Initial estimates suggest the economy expanded at a 2.1% annual rate during the second quarter. Analysts had expected a 1.8% increase. The increase was the result of increased consumer spending. Excluding the volatile trade and
Initial estimates of second quarter GDP is released at 8:30. Analysts are expecting a 1.8% growth rate as the decline in inventories is expected to subtract about 1.3% from growth. This is the inverse from the first quarter when inventory
Two consistent themes of these remarks is the discrepancy between value and growth stocks and the lack of liquidity. In many regards I believe they are connected.
Commenting about value stocks, Bloomberg wrote yesterday the last time value shares were
There is an old market axiom that the markets can remain irrational longer than one can remain solvent. Bank of America commented yesterday that today’s market is the most crowded trade in history. The environment is groupthink on
Most would argue the current advance is predicated upon a dramatic change in monetary policy. The bond market has fully discounted a 34% drop in the overnight rate in four months, one of the sharpest declines in monetary history, a decline that is
The main focus for the markets this week looks to be Fed Chair Powell’s remarks before Congress. His remarks can greatly influence the markets. As widely noted and discounted, the markets are expecting at least a 0.25% reduction in the
Friday the all-inclusive June unemployment data is released. The data could be of considerable significance regarding the outlook for monetary policy. As written many times the markets have discounted a 0.75% in the overnight rate by year end with