Chart of The Day – June 16, 2020

By: Chris Wenner in Charts 06/16/2020

Globally, there’s roughly $12.5 trillion of negative yielding debt.  Incredibly (besides that staggeringly high number), year-over-year, this $12.5 trillion number is nearly unch’d.  During the same 12-month stretch, our 10-yr Treasury yield has gone from roughly 2.05% to 0.75% as of today.  Much of the rest of the world is pricing in much slower growth than they are in the US.

Low yields in general – historically low – is and has been a consistent tailwind for equities over the past 12-24 months.  This pro-equity tailwind spurred from low yields will likely persist since economic growth outlooks aren’t (likely) pivoting higher anytime soon –

CW

 

By: Chris Wenner

Managing Director

Jonathan Molchan

Wennco's innovative strategies and robust OCIO capabilities are designed for RIAs, Family Offices, and high-net-worth individuals.

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