Some charts that caught my eye this week:
1. Retirement financial savings are higher than anticipated. Right here’s one thing I wrote in The whole lot You Must Know About Saving For Retirement:
My solely retirement rule of thumb is that your financial savings charge must be within the double digits as a share of earnings. If you happen to do nothing else in your monetary life than setting a excessive financial savings charge you’ll be alright. Ten % is a pleasant objective whereas 15% to twenty% of your earnings can be even higher.
Guess what?
We’re there.
The Wall Road Journal had a narrative this previous week that exhibits retirement savers are saving shut to fifteen% of their earnings:
Employees are placing away a report share of their earnings for retirement.
The typical financial savings charge in 401(ok) plans rose to a report excessive 14.3% of earnings within the first three months of this 12 months, based on a Constancy Investments evaluation of the thousands and thousands of accounts it manages.
Right here’s the chart:
Investor conduct has improved and savers are growing their financial savings charges over time.
That is nice information!
Would it not be good if the typical steadiness had been increased than $127,100?
Yeah it might however let’s deal with the positives right here.
2. Worldwide shares have been outperforming for longer than you assume. International shares are crushing the U.S. inventory market this 12 months:
Some nations are doing even higher:
Shares across the globe are lastly successful by a big margin.1
It appears like it is a current phenomenon however Jeffrey Kleintop has a chart that exhibits overseas shares have been outperforming for longer than you assume. This chart exhibits European shares versus U.S. shares going again to the underside of the 2022 bear market:
We’re now taking a look at practically three years of outperformance for worldwide equities.
That is an fascinating improvement.
Will it final?
I don’t know.
AI might need one thing to say about this cycle.
3. AI is perhaps unstoppable. Right here’s a chart from Mary Meeker’s most up-to-date deck on the state of tech:
AI adoption is going on at gentle velocity tempo. Because the expertise improves it’s solely going to turn out to be extra entrenched in our on a regular basis lives.
Perhaps everyone seems to be getting forward of themselves on the potential for this expertise. It wouldn’t be the primary time tech titans have promised us the world goes to vary after which it doesn’t.
However I don’t see the way you cease this practice.
At this level, I’d be extra shocked if we don’t see an AI bubble.
Michael talked about these charts, bubbles and rather more on this week’s Animal Spirits video:
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Now right here’s what I’ve been studying these days:
Books:
1I’ll have a follow-up put up on the explanations for worldwide outperformance.
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