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Unstable Economic Equilibrium
The Idea Farm
June 30, 2024
Together With
“Money is like a bar of soap. The more you handle it, the less you have.”
Research
Torsten Slok says the U.S. economy is in the middle of a tug of war between the lagged effects of Fed rate hikes and the easing of financial conditions since December 2023. He expects above trend economic growth, strong consumer spending, stubborn inflation, and higher for longer interest rates with no Fed cuts in 2024.
This paper highlights the importance of asset allocation in portfolio performance, along with the relevance of various asset classes (including International Equity, Real Estate, and Natural Resources) over time.
Facts & Figures
Money market funds are currently paying around $500 billion in dividends - that's 2.5% of annual consumer spending. Link
Americans have $17.5 trillion in commercial bank accounts, with the average savings account getting just 0.45%. Link
Even though golf clubs have become more advanced since the 1990s, they’re 60% cheaper. Meanwhile, the price to play a round of golf has gone up 25% in the last three years. Link
According to Bank of America, corporate client buybacks between June 3-7 were the second-largest in their weekly history since ‘10. Link
U.S. household stock allocation has reached an all-time high. Link
The number of Private Equity portfolio companies has doubled over the last decade.
Source: Bain & Company
S&P 500 companies have been generating more cash flow over the past 3 decades.
“The pace of Japanese firms’ announcements of outward mergers and acquisitions this year has been the fastest since 2019.” Link
As of June 7, 2024
We've already seen more inflation in just 53 months of the 2020s decade than in the entire decade of the 2010s. Link
As of June 16, 2024
Micro & SmallCap Shareholder Yield
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MYLD’s process goes beyond focusing on just dividends alone to include buybacks and debt paydown, a trio collectively known as shareholder yield. The result is a portfolio of companies that rank highly on shareholder yield and offer strong free cash flow characteristics.
Get access to shareholder yield in U.S. micro- and small-capitalization companies with the Cambria Micro & SmallCap Shareholder Yield ETF.
Distributed by ALPS Distributors, Inc. Investing involves risk, including possible loss of capital. To determine if this Fund is an appropriate investment for you, carefully consider the Fund's investment objectives, risk factors, charges and expense before investing. This and other information can be found in the Fund's full or summary prospectus which may be obtained by calling 855-383-4636 (ETF INFO) or visiting our website at www.cambriafunds.com. Read the prospectus carefully before investing or sending money.
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