Personal Saving is the economic indicator YOU should pay attention to!

Hi HODLers, Hiveans and Investors,

I wanted to show you guys the current most important economic data as it will impact the growth of the economy and risk-on assets.

Personal Saving (long time period)

Personal Saving (last 12Y)

As you can see on the 2nd chart we are almost below the long term moving average. These personal savings are in nominal $bn and therefore do not account for imflation!

So the current $1tn in Personal Saving is much less that $1bn back in 2012.

Personal Saving Rate

Definition

Personal saving as a percentage of disposable personal income (DPI), frequently referred to as "the personal saving rate," is calculated as the ratio of personal saving to DPI.

Personal saving is equal to personal income less personal outlays and personal taxes; it may generally be viewed as the portion of personal income that is used either to provide funds to capital markets or to invest in real assets such as residences.
Source: (https://www.bea.gov/national/pdf/all-chapters.pdf)

So Personal Saving Rate is the basis needed to invest in real estate, stocks and guess what.... cryptocurrencies! We saw a boom in the CryptoMarket when governments decided to hand out stimulus checks, coincidence? Not really...

My opinion

Both are indicated trouble ahead, especially if you also look at other data points such as CPI at all time high or Credit Card debt and Mortgage delinquency at very high levels and increasing.

To sum it up: Americans are still spending as if they had money, but they don't! Once they realize it (credit card maxed out, bank taking ownership of their leased car, etc...), they will have to stop spending and this is when the recession kicks in!

Even if the nice bounce we just had in the Stocks and Crypto Markets make us all very happy and optimistic, beware because data does not indicate that we are out of the woods yet...

This is Non Financial Advice (NFA) of course.

What is your take on the Crypto/Stocks Markets for the next 2-3 months?

In the meantime, stay safe out there!

Source: https://fred.stlouisfed.org/

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I'm in a tough spot :(

What’s happening to you?

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Oh nothing big - I just don't have as much saved up as I should, I spent frivolously throughout the past couple months and I'm learning tough lessons in life. All good, tough things.

Personal savings was bound to go down because wages can't keep up with the price increases for goods.

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So Personal Saving Rate is the basis needed to invest in real estate, stocks and guess what.... cryptocurrencies! We saw a boom in the CryptoMarket when governments decided to hand out stimulus checks, coincidence? Not really...

People hardly find money to invest amid global inflation. I think the winter will be even worse...

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Well, we will find out soon enough I guess. I agree and I hope most people will come out all right from this recession.

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I see everyone is still bearish except Crypto Twitter. Last week they said BTC was going to 13k, and now they say it is going to 45k. Unbelievable

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These damn moon boys should be held accountable 😅

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I think personal accountability and spending less than your income is the very first skill people need to acquire if their quest is to grow wealth.

Once you can save and have a little emergency fund, there are hundreds of investment strategies.

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Currently saving money without generate any kind of interest it is the same as lose money because the inflation will devalueate the money.

So, If people is thinking to save money maybe they need to see if there are any kind of application that have an interest higher than the inflation.

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What is your take on the Crypto/Stocks Markets for the next 2-3 months?

Ranging.

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I could see this happening. What range are you thinking about? 18-28k? 10-30k?

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