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Though Alex set last week’s chart quiz, it falls to muggins here to sift through the entries and award the T-shirt.
The enthusiasm muggins here will bring to the task is equalled only by their ignorance about the answers. Let’s get it done.
Chart One shows US corporate profits, though by what measure isn’t obvious. Francisco, a regular correspondent, says:
Among the different combinations: before/after tax, with/without IVA or CCAdj, the closest I found was “After Tax with Inventory Valuation Adjustment (IVA) and Capital Consumption Adjustment (CCAdj)”, which is nearly a perfect match, except for a few points: 2019Q3, 2020Q2, 2021Q3, 2022Q1 — I don’t know why, though.
Me neither!
Chart Two is University of Michigan five-year inflation expectations. Francisco adds:
I believe the units should be %, rather than percentage points. Though, I guess one could cheekily say it’s the difference with respect to 0% inflation.
Maybe? Not my problem.
Chart Three is the 10-year Treasury term premium. Commenter Anthony Cheng adds that it’s the Adrian, Crump and Moench (ACM) premia model, which sounds likely but gets no extra credit.
Cheng also highlights that the wording of last week’s quiz post suggests all the correct answers get a T-shirt. They won’t. We can’t afford two T-shirts:
Congratulations to Francisco, who’ll be receiving the exclusive “I Heart Charts” merch shortly. Another chance to win will come around this Friday,
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