Today, I’m sharing 7 of my favorite investing & economic charts from the past month.

These charts cover topics such as:

• Inflation
• Consumer debt
• Market volatility...and more!

Before we dive in, did you catch this week's podcast? 👇

3 Ways to Reduce Medicare IRMAA ​Whether you're 10+ years away from Medicare or already enrolled, this episode will help you navigate this pesky surcharge and protect your retirement savings. Listen Now →

Favorite Charts (January 2025)

#1 - Money Market Funds Eclipse $7 Trillion for the First Time

Just over a year ago, money market funds passed the $6 trillion mark for the first time, and now they’ve passed $7 trillion.

Remarkably, money market assets have nearly doubled since the start of 2020.

Not bad for a time when so many people have complained about how terrible everything has been.

#2 - Consumer Debt Is Growing...Or Is It? (Part 1)

​Consumer credit card debt has recently surpassed $1.1 trillion for the first time.

With every additional $100 billion, the media has been ringing the alarm (they love round numbers).

But, this figure tells only half the story...

When we compare total household debt to total assets, U.S. consumers are in a better position today than at any point over the last 50 years!

#3 - Consumer Debt Is Growing...Or Is It? (Part 2)

Although assets have significantly surpassed debt since the Great Financial Crisis, the ratio of credit card debt to disposable income has decreased.

Given rising asset prices, larger cash reserves, and increased disposable income, consumers appear well-equipped to withstand any economic challenges that may arise.

#4 - Wages Continue to Outpace Inflation

Despite rising inflation (which we’ll discuss shortly), wages have continued to rise faster than inflation, a trend that has persisted for the past 20 months.

These rising wages certainly help boost disposable income and keep debt payments manageable, as mentioned earlier.

We can only hope that this trend continues throughout 2025.

#5 - The Death of the Dollar Has Been Temporarily Postponed (Again)

You might recall that in mid-2023, there was growing concern about the overall decline of the dollar.

However, in the last few months, the dollar has been on a tear (when compared to six other world currencies), routinely making new highs.

While nobody can definitively explain this, we can likely attribute the dollar’s performance to our comparatively strong economic and productivity growth, equity performance, and higher yields.

Perhaps not surprisingly, the conversation is now shifting to whether the dollar is currently overvalued and destined for a collapse.

As the saying goes, the more things change, the more they stay the same.

#6 - Is Inflation Still a Problem?

One reason the Fed is wary about cutting rates is the noticeable persistence of inflation.

As shown in the chart below, inflation has begun to rise slightly.

However, we should note that this is the third time inflation has acted this way since it peaked nearly three years ago.

The first two instances did not lead to significant outcomes.

So, is inflation still a problem? Maybe 🤷‍♂️

We can’t say for sure because inflation is a moving target, which is why the Fed has been nimble in its approach.

While the ripple effects of combating inflation are not enjoyable (e.g., the situation with mortgage rates), it’s important to remember that these effects are far better than rapidly rising prices.

#7 - Volatility Doesn’t (Necessarily) Mean Poor Returns

Imagine a 5-year period where we experienced successive market drawdowns in the following amounts:

• -34%
• -5%
• -25%
• -10%
• -9%.

In this 5-year period, would you guess that the market had a positive or negative return?

(Hint: This example represents the last 5 years in the market.)

As you might remember, returns were far from negative over the past 5 years, despite the drawdowns noted above.

In fact, during that time period, the market had an average annual return of +14%, including reinvested dividends.

I hope you’ll consider this point whenever volatility returns in the future. I suggest that it likely won’t be the end of the world next time, either.

Bottom Line

It’s indisputable that there are some concerns starting to brew, but let’s be honest:

Isn’t there always something to worry about?!

Despite all the challenges we’ve faced this decade, the market, the economy, and the American consumer have thrived, surprising nearly everyone—including the Fed, economists, doomsayers, and pundits alike.

As always, stay focused on the things you can control. 😊

Stay wealthy,

Taylor Schulte, CFP®