No economic reports out today, but the demand for Bonds is keeping prices within 0.5% of YTD highs. Why this lil’ elf looks this way is because of the financial outlook for his parents’ generation. In 2010, households headed by those under age 35 (AKA: the Millennials), had median income of $37,600; four years later it’s dropped to $35,300. Worse, 41% of them have student loans, up from 34% in 2007 which was up from 23% in 1998, and the balances are up from $10,000 in 1988 to $17,300 in 2013. And what matters to you and me, fewer and fewer of them are purchasing homes.
Speaking of depressing statistics: China overtook the U.S. as the world’s largest economy. National economic output for China, $17.6 trillion, U.S., $17.4 trillion.
But don’t let that get you down! The weather today is supposed to be near December temperatures not seen here since 1939 and interest rates are outstanding!