Early second quarter projections for 2016 setting up a “sell in May” scenario
We are now starting to get first impressions on how strong (or not) the economy is expected to be over the next few months. To say the range is wide enough to drive a Class 8 truck through it would be an understatement. It’s certainly not shaping up to be a robust improvement from 1Q 2016 and one that will likely keep market returns capped, particularly as the talking heads pontificate “sell in May.”
In this week’s Monday Morning Kickoff:
- We dig into the reversal of late in the market and how it can be contributed to several factors that we have been warning would come to roost over the last few months. Read more . . .
- Last week we once again heard from the Fed, and those central bankers left interest rates unchanged exiting its April Federal Open Market Committee meeting. The Fed met our expectation for them to do nothing as they have come around to share the same perspective we’ve had for some time now. Read more . . .
- We’re waist deep in earnings reports — 1,400 companies reporting this week — and on the economic data front this week, we’ve got PMI reports from Markit Economics, car & truck sales, March Factory orders, plus the Employment Report that will begin to set the table for the kickoff of the second quarter. Read more . . .
