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August 21, 2023 Market Moment Thumbnail

August 21, 2023 Market Moment

Market Moment

Glen Eagle®: America’s Women-Owned Trading Desk®  


  • China may be following the path set by Japan in the 1990s. China's household debt has reached 62% of GDP (up from 28% a decade ago), and its corporate debt reached 160%. Japan similarly had household debt peak at 60% and corporate debt peak at 145%. 1
  • In this elevated interest rate environment, the S&P 500’s high-dividend stocks are underperforming. Non-dividend paying stocks have gained 20.4% YTD, while the top 100 highest-yielding stocks are down -3.5%.* 2
  • The use of cash in transactions has continued to drop. Cash accounted for just 18% of payments in 2022 (down -13% from 2016), while credit-card use rose to 31% over the same period. 3
  • Nvidia now has the highest valuation among the 500 largest US public companies. Of the 231 companies that had similar valuations over the last 50+ years, only 20% beat the market over the following year, with a median loss of 36%. 4

  1. The International Economy - "China Will Be The Next Japan"
  2. The Irrelevant Investor - "Animal Spirits: How Much is Happiness Worth"
  3. Barrons- "Visa and Mastercard Are Under Attack. They Will Do Just Fine."
  4. The Irrelevant Investor- "Animal Spirits: Do Valuations Matter?"

*Past performance is not indicative of future performance

Client Focused Trading® for large institutions, pensions, hedge funds, wealthy families, and private equity for over 30 years.

Glen Eagle Wealth, LLC is a member FINRA and SIPC

This desk commentary is for informational purposes only

Carol Ann Fernandez,  Rob Michel, Grier Vacek

Glen Eagle Wealth, LLC, 4422C Route 27, PO Box 399, Kingston, NJ 08528 (609) 631-8231

Glen Eagle Wealth | www.gleneagleadv.com