Week in Review 7/31/2020

US equities manage to gain despite steep declines in global equity levels, creating a visible divergence in markets.

Second quarter GDP numbers contract by 32.9 percent, the worst contraction in the history of the report. Initial jobless claims posts a slight increase for the second straight week since April.

Dollar continues to depreciate against basket of advanced economy currencies. M2 levels decline though. US budget balance worsens as well.

Current and lagged US real estate indicators do continue to show signs of recovery.

Savings rate did drop again as spending attempts to normalize, though decline is not as steep as May values.

Fed continues to stockpile foreign assets, but domestic purchases continue to level out or decline.

Long end of the Treasury yield curve shifts down again.

Abroad, German Bundsmark benchmarks dip below trend line.

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