And the hits just keep on coming.
- Contracts to buy previously owned U.S. homes surged far more than expected in April to the highest level in more than a decade.
- Orders for long-lasting U.S. manufactured goods surged in April on strong demand for transportation equipment and a range of other products.
The recent flow of good economic data does not necessarily mean the market is headed higher faster. There is still doubt about the near-term future, not the least of which is the Schiller P/E ratio for the S&P 500, which as of today is 24.12.
- The average P/E ratio since the 1870's has been about 16.7.
Understand, historical data is not reliable relative to the current market context, but it is helpful in understanding the current context relative to the recent lackluster earnings reports, and even though it is a number without substance, it does have perceptual meaning to a lot of investors.
The takeaway is this: Even though the economic data is pointing to a stronger Q2, and beyond, big money and little money both still look to the numbers, such as the Schiller P/E ratio of the S&P 500, and when it suggests the market is not cheap relative to the norm, then caution wins out over greed, which is good for the market – slower growth over a longer term is healthy. The base becomes more solid.
This November, it is looking more likely California will legalize marijuana, which is now consumed in the digital age.
- MassRoots (MSRT), one of the largest and fastest growing technology platforms for the cannabis industry, is pleased to report its website's traffic hit an all-time high on May 22, 2016.
Check it out. Don’t forget.