“Davidson” submits:
Real Retail Sales were $205,569mil Aug 2019, slowed to $204,442mil Dec 2019 and now have inched higher to $204,685mil in Jan 2020. With today’s report, series data the past 8mos saw some adjustments not enough to change the overall trends. Real Personal Income remains on trend and the Jan 2020 report on the Chemical Activity Barometer(CAB) broke higher after being flat due to a period of US$ strength. US$ strength continues today with signs that instead of capital streaming to the US from China, it appears that European investors are responsible.
Always check currencies when there is a fall in Treasury rates or a rise in equity prices that does not appear to be a capital shift between Fixed Income and Equities in our own market. It is how one detects foreign capital flows into or out of the US market place. The sharp rise in TSLA, MSFT, AAPL and other momentum names looks like a capital shift from European investors as the US$ rises against the Euro.
Economic expansion in the US remains intact and on trend since 2009. This week’s data provides ongoing confirmation of US employment trends reported last week.
US Equity prices should continue to rise.
