Charts & Chat - January 12, 2025

Eric Boyce • January 12, 2025

This week, CEO Eric Boyce discusses:

1. the recent unexpected strength in the labor market and its unusual impact on the stock market 

2. revolving credit oddly contracted last month following prolonged series of increases

3. inflation track feels like 1966-1982 pattern thus far...interesting; expectations picking up a bit with Trump administration policies on horizon

4. China slowdown illustrated

5. global stock/bond ration reflects optimism in global markets

6. term premium increasing for stocks; money fund assets continue to rise (potential market liquidity)

7. bonds more sensitive than equities to inflation surprises

8. stock and bond correlations higher; earnings yield relative to investment grade bonds suggests stocks may be more volatile




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