“Davidson” submits:
Economic activity always is a composite of moving parts. Currently it appears we have more moving parts than usual. Indeed so! We have multiple policy shifts in the works with the potential for beneficial outcomes. But, if these occur, it will be likely a couple of years before the final outcomes are known with the path uncertain.
“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.
“Davidson” submits:
For 8yrs part of the conversation has centered around a weak recovery and weak Hourly Wage Growth.
“Davidson” submits:
The US Employment Situation reported today indicated the economic expansion from 2009 continues. The Household Survey Employment level hit a record 153,168,000 individuals employed. The Jobs Openings data of last month forecasted we should have expected higher employment.
“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.