The Market in Pictures, March 3

Our team looks at a lot of research throughout each day. A few charts that caught our eye this week, and the way they fit the unfolding puzzle of evidence:

Brad: Without a corresponding price drop, the rise in mortgage rates is making it real hard on prospective buyers

Source: Strategas as of 02.28.2023

John Luke: as the math starts to favor prospective renters over buyers

Data as of 02.27.2023

John Luke: and current owners sit pretty with low rates locked in

Data as of 02.27.2023

Joseph: Owners of office buildings, however, are more likely to have loans coming due into harsh pricing

Data as of 02.27.2023

John Luke: and our own Treasury faces the same steep repricing of debt

Joseph: and even well-financed corporations will lose the tailwind of lower rates

 Source: Strategas as of 02.27.2023

John Luke: Flush homeowners have zero incentive to pay down mortgages, with money market yields exceeding their mortgage rates

Data as of 02.28.2023

John Luke: while Wall Street strategists remain inexplicably low in their suggested allocations to cash

 Data as of 03.01.2023

John Luke: Credit has grown right alongside nominal GDP

 Source: Pavilion as of 02.28.2023

John Luke: And investors aren’t really being compensated for risk seemingly seen by loan officers

 Data as of 03.01.2023

Brad: People refer to the stock market, but under the hood it really is a “market of stocks” with wildly varying industry conditions

Source: Strategas as of 02.28.2023

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