Market Approaching New Highs/Earnings Season/The Economy

 

 

 

 

Market Approaching New Highs/Earnings Season/The Economy

 

 

The Market simply continues to melt higher, believing that the current status of low rates and an inevitable solution with China will reignite the economy and then Corporate Earnings. In a few weeks, we’ll start to hear from Corporate America reporting 1st Quarter Earnings and more importantly, guidance for the remainder of 2019.

 

The bar on earnings has been lowered, so I will not be surprised if the results are again positive, however, guidance will be the question, in my opinion. Perhaps if we receive lackluster guidance, we’ll all of a sudden see a deal with China?

 

What will happen, as always, time will tell!

 

Market Wrap

 

Last week, WOW! All Indexes finished strongly in the black with the Dow Jones moving up 1.95 %, the S&P 500 increasing by 2.09%. The Nasdaq Composite a robust 2.71% and the Russell 2000 Small Cap Index up 2.80%.

 

Bonds as measured by the Barclay’s Aggregate Bond Index slipped (.30%).

 

Over the pond was also impressive with the MSCI EAFE International Index up 2.01% and the Emerging Market Equity Index increasing by 2.58%.

 

With the major Market Indexes approaching last year’s high, the question is, will we breakout and have further upside or will we see a retrenchment. Most are leaning towards a breakout. My opinion is simple! No predictions, just good sound Asset Allocation and quality Investments based specifically on each Client’s needs!!!

 

The Economy

 

Growth worries may have subsided a bit last week as the 10-Year US Treasury closed the week @ 2.49%, up from 2.41% the prior week. Last Friday’s job report showed a strong increase of 196,000 jobs in March. Wage growth remained strong @ 3.2%.

 

Good economic data, low unemployment and low interest rates can certainly take the current economic expansion longer than many people expect!! Economic data however, can certainly change without forewarning so attention to detail in this environment is paramount!

 

Question of the Week

 

The United States is the largest Economy in the world, followed by China. In 2017, which is the latest data available, which country was the 3rd largest?

 

a) Germany

b) United Kingdom

c) India

d) Japan

 

 

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