Yahoo Finance has released its first edition of the Chartbook, a collection of 50 charts that tell the story about the markets and the economy in 2023. The Chartbook covers a wide range of topics, from money supply to artificial intelligence, and offers insights from experts and analysts. Here are some of the highlights from the Chartbook.
Money delivered during pandemic is still supporting the economy
One of the charts in the Chartbook shows the growth of money supply (M2) before and after the COVID-19 pandemic. M2 is a measure of the amount of money in circulation, including cash, checking accounts, savings deposits, and money market funds. The chart shows that M2 surged in 2020 and 2021 due to the government stimulus programs, such as the CARES Act and the American Rescue Plan, which provided direct payments, unemployment benefits, and loans to households and businesses. The chart also shows that M2 has started to decline in 2023, as the Federal Reserve has tightened its monetary policy by raising interest rates and reducing its bond purchases.
However, according to Julian Emanuel, a macro research analyst at Evercore ISI, the high level of M2 is still supporting the economy, as consumers are spending down their pandemic savings. He said that “the economy has remained supported, the consumer strong, and employment robust.”
Remarkable surge in private R&D investment
Another chart in the Chartbook shows the trend of research and development (R&D) investment in the US since 1950. R&D investment is an indicator of innovation and productivity growth, as it reflects the amount of resources devoted to creating new knowledge, products, and technologies. The chart shows that R&D investment has increased steadily over time, both as a percentage of GDP and in absolute terms. The chart also shows that private R&D investment has surpassed government R&D investment since the late 1970s, reflecting the growing role of the private sector in innovation.
Rick Rieder, the chief investment officer of fixed income at BlackRock, said that the surge in private R&D investment is remarkable and has implications for the future of the economy. He said that “the media and market participants are highly attuned to inflation (for good reason), but what we think is overlooked, and often underestimated, is the long term trajectory of growth.”
Artificial intelligence is transforming industries and markets
The Chartbook also features several charts that illustrate how artificial intelligence (AI) is transforming various industries and markets. AI is a branch of computer science that aims to create machines and systems that can perform tasks that normally require human intelligence, such as learning, reasoning, decision making, and natural language processing. AI has applications in many fields, such as health care, education, finance, manufacturing, entertainment, and security.
One of the charts in the Chartbook shows how AI is disrupting the health care industry by enabling faster and more accurate diagnosis, treatment, and prevention of diseases. The chart shows that AI-powered health care startups have raised over $50 billion in funding since 2015, with a record $15 billion raised in 2022 alone. The chart also shows that AI health care startups have attracted more than 1,000 investors from various sectors, such as venture capital firms, pharmaceutical companies, tech giants, and governments.
Another chart in the Chartbook shows how AI is influencing the stock market by providing insights and recommendations to investors and traders. The chart shows that AI-powered stock analysis platforms have gained popularity among retail investors, especially during the pandemic. The chart shows that one of these platforms, Stocktwits AI Signals, which uses natural language processing to analyze social media posts and generate buy or sell signals for stocks, has seen its user base grow by more than 300% since its launch in 2021.
The Chartbook is a valuable resource for investors
The Yahoo Finance Chartbook is a valuable resource for investors who want to understand the current state and future trends of the markets and the economy. The Chartbook provides a comprehensive and diverse perspective on various topics that affect investors’ decisions and outcomes. The Chartbook also features insights from experts and analysts who share their views and opinions on these topics.
The Chartbook is available online at Yahoo Finance’s website, where readers can browse through all 50 charts and read more details about each one. The Chartbook will be updated periodically with new charts and data as they become available.
