The U.S. economy remains on solid footing, continuing to move into a period of exceptional growth.
Examining performance trends over the past year reveals a nuanced relationship.
Trendy and speculative trades have gained micro bubble status and rolled over of late, but their weakness hasn’t infected the broader market.
Investor attention has shifted from Growth to Value as the economy regains its footing, but understanding their factors and fundamentals is crucial.
The Fed kept rates unchanged, but upgraded its outlook; while the “dots plot” moved higher amid a rising percentage of officials expecting an earlier “lift off” in rates.
Sentiment has been a problem; higher yields was the catalyst for a bit of a reset.
Looking at the latest economic data reveals V-shaped recoveries in many goods-based indicators; while services has more catch-up to do.
As quickly as it soared to the moon, GameStop came back down to earth; but the lessons learned are key to turning day trading speculators into longer-term investors.
As a review of the year that was, today’s report analyzes and dissects the nature of the K-shaped recovery in both the economy and stock market.
December brought the first payrolls decline since last April; with leisure/hospitality—and women—bearing the brunt of the weakness. Expect more economic “scarring” to come.