This month, Jason Weaver discusses labor, leverage and liquidity.
Ratio of total required household debt payments to total disposable income
The Fed pays attention to this metric as it is a good gauge of the health of the consumer
A high level of indebtedness can lead to increased delinquencies and bankruptcies. This could threaten the health of the economy.
In Q3 2023, total money market fund balances reached an all time high of $6.1 Trillion.
The high money market balances can be attributed to higher yields and economic uncertainty
As yields fall, investors become more comfortable with the economy and yields fall, investors will likely begin investing more of their cash