Top 5 Charts of the Day – December 29th 2020

U.S. #Housing Prices Index Increased At The Fastest Pace Since June 2014https://t.co/Lz8uIUhACN

— Christophe Barraud (@C_Barraud) December 29, 2020

Housing Prices at record highs, Mortgage rates at record lows.

Fed's response: we need more stimulus and more inflation, gotta keep pumping… pic.twitter.com/rout9iIYtU

— Charlie Bilello (@charliebilello) December 29, 2020

1. Stocks: all-time highs
2. Home prices: all-time highs
3. Corporate bond yields: all-time lows
4. Mortgage rates: all-time lows
5. Fed: we need many more years of 0% rates and bond buying to pump up markets & increase inflation.
6. Bitcoin: all-time highs

Chart via @ycharts pic.twitter.com/prgnyunWus

— Charlie Bilello (@charliebilello) December 29, 2020

What's so worrying about rising central bank balance sheets is that they're an absorbing equilibrium: once you go down this path, you can never go back. Fed attempts to shrink its balance sheet a few years ago ended with a market tantrum in Q4 2018. And that was the end of that. pic.twitter.com/VvOrDmdGn6

— Robin Brooks (@RobinBrooksIIF) December 29, 2020

'Speculative traders are ending the year doubling down on their bets against the dollar. Net short non-commercial positions in futures linked to the ICE U.S. Dollar Index have surged to the most since March 2011.' https://t.co/68e5Kvqmfe pic.twitter.com/E77Xjo9a2T

— Jesse Felder (@jessefelder) December 29, 2020