Some charts that caught my eye this week:
1. Retirement financial savings are higher than anticipated. Right here’s one thing I wrote in Every part You Must Know About Saving For Retirement:
My solely retirement rule of thumb is that your financial savings price must be within the double digits as a share of revenue. For those who do nothing else in your monetary life than setting a excessive financial savings price you’ll be alright. Ten p.c is a pleasant objective whereas 15% to twenty% of your revenue can be even higher.
Guess what?
We’re there.
The Wall Road Journal had a narrative this previous week that reveals retirement savers are saving shut to fifteen% of their earnings:
Staff are placing away a file share of their revenue for retirement.
The typical financial savings price in 401(ok) plans rose to a file excessive 14.3% of revenue within the first three months of this 12 months, in accordance with a Constancy Investments evaluation of the hundreds of 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!
Wouldn’t it be good if the typical stability have been larger than $127,100?
Yeah it might however let’s concentrate on the positives right here.
2. Worldwide shares have been outperforming for longer than you suppose. International shares are crushing the U.S. inventory market this 12 months:
Some international locations are doing even higher:
Shares across the globe are lastly profitable by a big margin.1
It looks like this can be a current phenomenon however Jeffrey Kleintop has a chart that reveals international shares have been outperforming for longer than you suppose. This chart reveals European shares versus U.S. shares going again to the underside of the 2022 bear market:
We’re now 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 may be unstoppable. Right here’s a chart from Mary Meeker’s most up-to-date deck on the state of tech:
AI adoption is occurring at mild pace tempo. Because the know-how improves it’s solely going to turn into extra entrenched in our on a regular basis lives.
Perhaps everyone seems to be getting forward of themselves on the potential for this know-how. 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 prepare.
At this level, I’d be extra shocked if we don’t see an AI bubble.
Michael talked about these charts, bubbles and way 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 publish on the explanations for worldwide outperformance.
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