I like the charts here as they show ISM is like a seismograph. It makes the point of watching the trend being over 50 and not getting too caught up each time the number comes out. It will fluctuate wildly, just keep it over 50
“Davidson” submits..
The Institute for Supply Management released its Purchasing Managers Report this morning with up-tics in the PMI to 55.5% and the Employment component to 59.2%. Anything over 50% is deemed as economic expansion and minor fluctuations are essentially meaningless. The St Louis Fed now carries this series and supplies the charts below.
The high level of the Employment index signals by itself a strong economy in the months ahead!
The economic expansion remains in full force and the market has responded accordingly this morning. I anticipate several years of attractive economic activity which is typically reflected in positive equity performance.
