June 2019 - Chart of the Month

Source: The Wall Street Journal

Source: The Wall Street Journal

As the trade dispute between the U.S. and China enters more uncertain territory the effects are disrupting economic activity and the capital markets. Above, analysis by the WSJ shows the expected tariff on broad categories of goods in the U.S. The chart to the right shows the decreased CAPEX by S&P 500 companies in Q1 2019 as compared to 2018. If the U.S. economy is to come anywhere near the growth rates of 2018 businesses will needed to continue spending. Below is the increase volatility in the market as measured by the CBOE’s VIX. Uncertainty surrounding tariffs grew in May and with the deal still dragging on, investors have been more risk-averse.

Source: FRED

Source: FRED