And down the stretch we come!

Yes, folks, we’re already three-quarters of the way through the trading year, after closing the books last Friday on not only the month of the September but the third quarter of the year as well.

Before we know it, we will be hearing the Christmas music playing in the stores and the Starbucks red cups will be making an appearance.

In the meantime, we’re bracing ourselves for the onslaught of earnings announcements, which will be interesting given the spread between current valuations and what we expect will be a steady beat of downward revisions for the fourth quarter and the first half of 2017. But first, this week we dig into housing data, which in our view, shows a great deal of promise.

Download this week’s issue at the bottom of this email or click here.

Chris Versace
Chief Investment Officer
Tematica Research

• Below the headlines, “disappointing” housing numbers show a reason for hope. 
  On a direct and indirect basis, the housing market accounts for as much as 18 percent of GDP and has a significant impact on several of our investment themes — primarily the Rise & Fall of the Middle Class. Last week we received several important data points on the current housing situation in the U.S., and while the headlines were that the results were disappointing, we see some sunshine beneath the headlines . . .  Read More >>
• Is it 2008 again?
  For 3Q 2016, the estimated earnings decline for the S&P 500 group of companies is expected to be -2.1 percent. If those estimates hold up, or possibly come in every worse, then it will mark the sixth consecutive quarter of year-over-year earnings declines. Guess when the last time that happened? . . . Read More >>

• Looking ahead to December already
  We’re not talking about Santa. We’re talking about Yellen and the Fed, which more than likely will hold interest rates until its December meeting. Data flowing in this week will start to frame the narrative as to what the Fed is likely to do at that meeting, as well as allow Wall Street analysts to revisit expectations as we head into the rush of quarterly earnings reports before too long . . . Read More >>

Click below to download the full report:

Monday Morning Kickoff 10-03-2016