Q: What will happen if China stops buying US Treasuries? A: It already did--a decade ago.
China has been a net seller of US Treasuries for over a decade and now holds only 4% of all outstanding US Treasuries--down from 14% 10 years ago, per data from the US Treasury. pic.twitter.com/1OcFdMvIyj
Since 2019-end, owner's equivalent rent (the biggest component of CPI) is up a cumulative 10.8% and Apartment List's national median rent is up a cumulative 24.2%, implying CPI shelter has a lot of catching up to do.
About half of US income is earned by households making more than $100,000 per year, with most owning their own homes. So the largest expense for these households isn’t rising even w/tighter Fed policy, but wages are going up, perhaps explaining why core inflation is so sticky: MS
A Wealth of Common Sense is a blog that focuses on wealth management, investments, financial markets and investor psychology. I manage portfolios for institutions and individuals at Ritholtz Wealth Management LLC. More about me here. For disclosure information please see here.
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