The yield curve remains inverted, but the spread between the 10 yr. and 3 mo. treasuries has narrowed. However, the reason for this is has been due to a bear steepener as opposed to a bull steepener. In this video, we talk about these ideas and how it impacts the yield curve. We also discuss the implications of an inverted yield curve on recessions.
With the most recent #CPI report, let’s dive back into the macroverse to unpack the numbers. In this video, we discuss headline inflation, core inflation, and break the inflation numbers down by category. We also discuss potential impacts of the recent CPI report on the terminal Fed Funds rate.
Let’s discuss recent movements in the #SP500! We talk about the seasonal correction, and at what point it might no longer be a seasonal correction. We also discuss risk assets and how they relate to the bond market.
Gross Domestic Income (GDI) measures the total income generated by a country. It provides an alternative perspective to Gross Domestic Product (GDP) by focusing on the income earned by various entities, including individuals, businesses, and the government. GDI takes into account all income sources, such as wages, salaries, profits, rents, and taxes.
GDI differs from GDP, which values production by the amount of output that is purchased, in that it measures total economic activity based on the income paid to generate that output. In other words, GDI aims to measure what the economy makes or “takes in” (like wages, profits, and taxes) while GDP seeks to measure what the economy produces (goods, services, technology).
If Gross Domestic Income (GDI) is increasing, it generally indicates positive economic growth and prosperity. An increase in GDI implies that the total income generated within a country is expanding. This can be attributed to various factors such as rising wages, increased business profits, higher tax revenues, and overall economic activity. The opposite is true for a declining GDI, which usually happens during recessions. This can easily be visualized by looking at the %YoY change.