10 Charts That Mean Everything To The Global Economy In 2014 | Exploring Markets

10 Charts That Mean Everything To The Global Economy In 2014

Here is a list of 10 charts that are incredibly important to the global economy. Each chart has been hand-selected from Business Insider's article titled, Wall Street's Brightest Minds Reveal The Most Important Charts In The World. Study, bookmark, or revisit each of these charts as the year rolls on. They are each important in their own way:



1. Geopolitical events such as the crisis of Ukraine vs. Russia and the destabilization of Iraq have had VERY little impact on Crude Oil prices. This is, nearly, in complete contrast with past conflicts that have taken place in oil rich and oil resourceful countries:



2. We have heard the inflation worries. We have heard the deflation worries. BUT, one that we have NOT heard is stagflation. Several notable economists at Bloomberg, as well as others polled by Bloomberg, are believing that stagflation is a threat. We are agnostic to this. We more-so find it interesting that stagflation could become the next economic fear headline that appears on newspapers everywhere:



3. The American recovery is very real. And this chart displays that perfectly. It shows the rise and fall of initial jobless claims in the US. People are finding work, no matter what you read or may think otherwise: 



4. The stock market in China has been beaten down over the years. But, one renowned investor, Jeffrey Gundlach, thinks it is time it made a huge move. Here is his chart. Imagine if China's stock market begins to break out in accordance with the US. That is very bullish for the global financial system:



5. Everyone is used to hearing about how much cash US companies are sitting in. Very few people have looked at Japan. Because corporations in Japan are holding a ton of cash too. What could this mean? Well, simply put, these corporations could put the money to work by returning cash to shareholders or investing in their economy:



6. The global economy has never been this interconnected before. If you think about it, you could pick a random name out of a hat, and instantaneously connect to them by email, cell phone, or social network. That has never been possible until now. What could that mean for the global economy? Global trade and interconnectivity could be ready to sky rocket:



7. One very potent way to watch global trade, demand, and investment is through the price of base metals. So, think of copper, tin, and zinc. These are the metals that are essential to building and construction:



8. Quantitative Easing has changed the world. Period. And, surprisingly, it is getting ready to end. Hopefully forever. So what can you expect rates to do? Just look at this chart. It is fairly obvious to see what will happen:




9. Buybacks in the American stock market have been sensational over the last 2 or so years. Companies have returned a ton of money to investors. They have also doubled down on their stock price and shares. But, perhaps this is somewhat worrisome and a trend everyone should watch. It is very possible that these buybacks have been driving the market higher, and not contributing to underlying economic improvements like capex would do:



10. The US stock market leads all. It is the global barometer. Without it, the global economy cannot survive. The dollar is the world's reserve currency. The stock market is the dollar's home and mode of circulation. That is why we have dedicated these last two slides to the S&P 500 -- one of the most important indexes in the US. So keep your eye on this earnings trend as the year goes on: