DC Lite #80
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1. S&P Global US Sector PMI. "All seven monitored US sectors posted an increase in business activity during February, up from four in January and the highest number for almost two years."
2. Central banks vs. gold. "In January, central banks reported that they increased global official gold reserves by 39t. This was more than double the (revised) December net purchases of 17t, and the eighth consecutive month of net purchases."
3. Household equities allocation. "The household sector in the US is more invested in equities, relative to its total holdings in financial assets, than it was in 2000."
4. Household allocation vs. returns. "High household allocations to stocks is a portent of poor long-term returns."
5. Valuation vs. performance. "Today’s multiple of 25x normalized earnings implies +2.6%/yr annualized returns over the next decade based on the historical relationship."
