DC Lite #24

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1. Affordability. "A homebuyer with the median U.S. income would’ve had to spend a record 41% of earnings on monthly housing costs in 2023, up from 39% in 2022 and 31% in 2021."

2. Credit card delinquencies. "US credit card delinquency rates are trending by age group, especially for sub 40y olds, which is normal ahead of/into recessions (a key sign of growing consumer stress)."

3. State Street Risk Appetite. "Institutional portfolios are neutral on riskier assets after being very cautious in October (hence the November rally). Getting “big money” to grow more bullish will likely require incremental confidence in the US/global economy."

4. All-time highs. "Only 24% of stocks in the S&P 500 trade within 10% of their alltime highs (vs. 28% historical average), much lower vs. prior bull market peaks."

5. SPX vs. cutting cycles (II). "Index valuation has typically expanded following the first Fed cut."

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