Economy Is Doing Well? Bloomberg economic surprise index hit its highest level in 2 years. That’s based on January data which tells us the economy likely would have had a nice rebound in the 1st half of 2020 if it wasn’t for the coronavirus. Even if the coronavirus has a big impact on global growth
Selloff Continues, But Velocity Slows The stock market continued its losing streak on Wednesday as it has been down 5 straight days. Traders are loving this. If you have a time horizon of more than a few weeks, this is a great buying opportunity. S P 500’s valuation is coming more in line with reali
Housing Price Growth Improves The housing market has recovered in the past few months. In line with this, we’ve seen an uptick in price growth. That makes sense because demand is high and rates are coming down. If rates were to spike, we’d see a decline in price growth. But obviously the reverse is
Fear Is Here: It’s Time To Start Buying S P 500 fell 3.03% on Tuesday as fear over the coronavirus spreading globally gripped Wall Street. There is also some fear Bernie will be president. This decline is also about the stock market being overvalued. That situation has gotten better as prices have c
Uptick In Economic Growth In January Because of the crash in stocks, people probably aren’t that interested in economic data from before the coronavirus fears were gripping the world. However, it’s important to note how the economy was doing before the negative impact because it tells you how ready
Big Decline On Monday S P 500 had its biggest 1 day decline in 2 years as it fell 3.35%. This decline was so severe, it wiped out the entire year’s gains as the market is now down 15 basis points in 2020. This was the kind of volatility investors have been searching for all year.
Existing Home Sales Fall Slightly In January, existing home sales fell from 5.53 million to 5.46 million which was a 1.3% monthly decline. Sales beat estimates by 10,000 and were revised 10,000 lower in December. As you can see from the chart below, the sales rate has been consistent for the past 4
Back To Back Declines The stock market wasn’t heavily overbought heading into the recent back to back declines. But it was getting expensive as the S P 500’s forward PE ratio was about 19. When stocks or a market are expensive, anything can take them lower. If the market starts to realize Bernie mig
Below 50 Markit PMI! It was wrong in to predict that the Markit manufacturing PMI would beat estimates. This February flash reading had an across the board miss. It was correct that outside of the Boeing 737 Max delays and the coronavirus the manufacturing sector is doing well. The latter had a sign
Mini Crash It’s quite amazing that the day after Jim Cramer asked where the sellers were the market has a mini crash. S P 500 fell 1.23% from peak to trough in 50 minutes on Thursday morning. That confused traders who didn’t see it coming. After the market gapped down, traders bought the dip so the
