Is everyone okay? Yesterday’s drop knocked the wind out of many an investor, if many an investor didn’t see it coming. Frankly, the market came down a bit harder than I expected it would, but it is what it is, and now, well, let’s see how long it takes to rebuild the momentum.
- The Conference Board reported that their Leading Economic Index rose +0.1% in May, which was below the consensus for a reading of +0.2% and well below last month’s reading of -+0.8%.
Still on the plus side for the economic reality I always talk about in this space, barely, but the data, like all economic data, tends to fluctuate as it most always tends to fluctuate. Steady as she goes, however, is the mantra for the day.
- Ataman Ozyildrim, an economist at the Conference Board said, “Despite month-to-month volatility, the LEI’s six-month growth rate remains steady, suggesting that conditions in the economy remain resilient. Widespread gains in the leading indicators over the last six months suggest there is some upside potential for economic activity in the second half of the year.”
See, steady as she goes is the mantra for today and every day, as far as I am concerned when it comes to making your money work. Keep your eye on the fundamentals, always, and the market will seem s a lot steadier, even in these times of unsteadiness.
- Ken Goldstein, economist at The Conference Board said, “Growth will depend on continued improvement in the housing market and an easing of consumer and business caution which would allow overall consumption and investment to gain traction. Cutbacks in public spending programs and the drag from foreign trade remain headwinds.”
So, Mr. Goldstein sees housing as a key to keeping the economic momentum going and I assume he also means an “easing of consumer and business caution” suggests confidence.
- The National Association of Realtors reports that Existing Home Sales for the month of May improved significantly. Sales were reported at an annualized rate of 5.18 million units, which was above the estimate for a rate of 4.98 million units
- The Bloomberg Consumer Comfort Index for the week ending 16-Jun was reported at -29.4, which was above last week’s reading of -31.3 (two weeks ago: -29.7). The current reading represents an improvement from the recent pullback. Recall that readings just below 30 have been some of highest readings since the credit crisis began.
It would appear, then. If Mr. Goldstein is correct, the US economy is steady as she goes and this will mean the market will smooth out once Mr. Bernanke stops talking and the market turns back to reality.
Take a few days off, be with the fam, have some fun …
Trade in the day; Invest in your life …
