Insights on the Economy & Markets
U.S. Aggregate Investable Funds
August 2024
The amount of cash on the sidelines as a percentage of equity and bond market value is at record lows.
A low ratio of investable funds can be viewed in two ways. 1) There’s a greater percentage of wealth tied up in the capital markets and 2) if investors want access to that wealth, they’ll have to turn those investment to cash. With a lower supply of investable funds and an increased demand for cash, this has the potential to shift market equilibrium. If the demand for cash does cause a shift with the investable funds ratio at a record low, securities prices may have to adjust in order to increase buyer appetite. *Including Money Market Funds, Time And Saving Deposits Of Households And Investment Organizations, And Checkable Deposits Of Investment Organizations; Source: BCA Calculations. **Wilshire 5000 Market Cap.
Share of Population Living in Urban Heat Islands
July 2024
A significant portion of U.S. residents live in densely populated urban areas that experience higher temperatures relative to surrounding areas.
Amid a historic, nationwide heat wave, concrete jungles are intensifying the increase in temperatures in certain cities and neighborhoods. A recent study by the science research and communication organization Climate Central highlights the cities where urban heat islands affect the largest number of people. On average, about 68% of people living in the biggest cities in the U.S. experience temperatures at least 8°F hotter due to the built environment. Newark, N.J., takes the top spot on the list, at 97% of the population. Data: Climate Central; Map: Kavya Beheraj/Axios.
Share of U.S. Workers Earning Under $17 an Hour
June 2024
On average, ~23% of workers in the US are earning less than $17 per hour according to Oxfam’s report analyzing data released by the Census Bureau and Labor Department.
The low-wage worker demographic has decreased significantly from 52 million Americans in 2022 to 39 million Americans in 2023. Of those 39 million individuals, 34 million are over the age of 20. The increases in lower tier wages are attributed to a handful of factors including inflation, a strong labor market, and heightened demand. Although nominal progress has been made for lower income earners, affordability on real terms for necessities is still a struggle for many. Source: Oxfam; Chart: Rahul Mukherjee/Axios.
Active ETF Market Composition
May 2024
The active Exchange-Traded Fund (ETF) investment space continues to see substantial growth.
Although passive strategies brought ETFs to mainstream investing, active strategies are catching on and catching up. As active ETFs continue to increase in popularity with investors, retail and institutional like, assets under management of this market segment have ballooned to upwards of $600 billion in 2024. Despite rapid growth, 74% of assets under management in active ETFs remains controlled by the top ten issuers. Source: Morningstar Direct. Data as of March 31, 2024.
IRS Filing Year 2022 data: States That Won and Lost the Competition for People and Their Wealth
April 2024
When Americans move, they take their earning power with them. This results in a large number of incomes moving in and out of the 50 states.
Florida, Texas, and the Carolinas led the Southeast and Mountain state regions as clear winners, receiving the greatest influx of taxpayers nationwide in 2022. The West Coast, Upper Midwest, and Mid-Atlantic states stand out as the biggest net losers of taxpayers, with California and New York losing 300,000 and 220,000 residents respectively. This pattern has held for years and was later amplified by the global pandemic. The cumulative result has significantly impacted a variety of aspects ranging from business relocations to congressional representation. Source: IRS SOI migration data. Created by Datawrapper.
