DC Lite #518

"Household balance sheets are in the best shape we’ve seen for decades"

Author

Daily Chartbook
January 16, 2026

Welcome back to DC Lite: Daily Chartbook’s free, entry-level newsletter containing 5 of the day’s best charts & insights.

1. Household balance sheets. "Household balance sheets are in the best shape we’ve seen for decades, both on the asset and liability side."

2. Household liquidity. "The great overhang of liquidity is still here – and more important to keeping the economy afloat than net worth."

3. Rotation. The Mag 7 are at a key level relative to the equal-weight index.

4. Technical Composite. The S&P 500 is overbought according to MarketDesk's Technical Composite, which suggests elevated risks of a pullback.

5. EPS vs. unemployment. "S&P EPS are almost universally expected to increase again this year. However, the continued rising trend in the unemployment rate is telling a much more cautious story about potential profit outcomes in 2026."

ICYMI

DC Lite #517

"The bond market has never been so quiet"

www.dailychartbook.com/p/dc-lite-517

DC Lite #516

"In just seven months, annualized revenue at 'AI native' companies selling AI models or apps has doubled, from $15 billion to more than $30 billion"

www.dailychartbook.com/p/dc-lite-516

DC Lite #515

"The start of 2026 has seen the ‘risk-on’ mood gain further traction among institutional investors"

www.dailychartbook.com/p/dc-lite-515

DC Lite #514

"Risk Appetite has continued to climb, rising to the highest level since the summer of 2021"

www.dailychartbook.com/p/dc-lite-514

DC Lite #513

"Health care & social assistance accounted for essentially ALL of private-sector job growth in 2025"

www.dailychartbook.com/p/dc-lite-513

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