Chart of the Day
Posted at 10:30 a.m. on June 28, 2013
– Michael Hartnett highlights two oft-mentioned data points side-by-side, showing how the labor force participation rate (in blue) has dropped below levels last seen over three decades ago, while the value of assets in stocks and bonds (in red) continues its march upwards.
“The decline in global interest rates, aided by $1.4 trillion of inflows into bond funds, has caused asset prices to rise markedly. From the March 5th 2009 lows, global equity market cap more than doubled to its May high of $58 trillion (now $53trn) and $100 invested in US bonds and stocks is now worth $175. Capitalists have rejoiced, although the workers have been notably less rewarded.”