4. Credit standards are much better today, resulting in very low delinquency rates compared to pre-crisis. Delinquency rates in the three years preceding the crisis were over 600 basis points. Last year, delinquency rates were 21 basis points.

Serious Deliquency rate by origination year

5. Household debt service as a percentage of income is near multi-decade lows. Whereas wage growth hasn’t been off to the races, household balance sheets are strong.

6. After the personal savings rate bottomed out in 2005 at 2.2%, consumers are tucking away more and more of their income for future consumption. The personal savings rate currently sits at 6.2%.

Personal savings rate

To gain more insight into how investors should be positioned in this market, listen to the Sage Advice Podcast.

This article was written by the team at Sage Advisory, a participant in the ETF Strategist Channel.

Subscribe to our free daily newsletters!
Please enter your email address to subscribe to ETF Trends' newsletters featuring latest news and educational events.