“Davidson” submits:
There are many calls today for a correction, but economic activity continues to move forward and markets follow. Lately it seems many well-known and media-popular forecasters have called for another market/economic correction.
Tag: spy
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Equities Rise Should Continue……
“Davidson” submits:
Economic data and equity markets are highly correlated over time. The correlation is not day-to-day or even month-to-month as the media attempts to connect the dots on a daily basis, but over several years the connections become apparent. Along the way, there are many using market trends to predict the trend of the economy and the next few months, even days, of market prices.
“Davidson” submits:
Equity prices have a long history of rising on positive surprises. Many believe markets to be an ‘efficient’ pricing mechanism of all that is known and unknown. If they believe this, then it is surprising that they are willing to pay more for unexpected positive news.
How can we have a record number of $SPY companies beating sales estimates, record profits and other record economic indicators with an economy growing just over 2%?? Maybe, just maybe, it’s because things aren’t as mediocre as they seem?
“Davidson” submits:
How do we achieve record employment, record earnings, record Personal Income, record Retail Sales, near record Industrial Production and still think that our economy is weak? The economic data from the St. Louis Fed speaks volumes and underscores the strength of the current economic cycle. Then, why the continued gloom?
“Davidson” submits:
CAB hit new high this week, the earnings surge predicted by this index 14mos ago in US Industrial Sector is being reported today.
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T-Bills, Earnings and the US Dollar
“Davidson” submits:
T-Bill rates on a sharp rise as positive EPS surprise markets. T-Bill rates now at 1.17% and exceed Effective Fed Funds at 1.16%.
“Davidson” submits:
US$ has continued its dive towards the long-term trend in the 65-70 range using this Trade Weighted Index.
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Wages, Inflation & Retail Sales
“Davidson” submits:
For 8yrs part of the conversation has centered around a weak recovery and weak Hourly Wage Growth.
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Pessimism Is infectious
“Davidson” submits:
Pessimism is infectious. Disasters are what drives us to listen to news and drives us to media to learn more. We worry that bad things could happen.
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S&P Intrinsic Value Update
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