Market continues its melt-up while underlying fundamentals continue to erode. Something has to give soon.
Re-arranging deck chairs on the Titanic?
Probably a bit too strong for describing the current market conditions.
Nevertheless, when we set a new record high in the S&P 500, but at the same time find the index trading at 18.2x expected 2016 earnings plus looking at the flow of eroding fundamentals in the economic data we’re getting, then you can understand our level of uncomfortableness.
In this week’s Monday Morning Kickoff:
- Our observations on the current market conditions, including the impact of share buyback activity, earnings from the S&P 500 companies in the back half of 2016 and a look the number of sectors that have moved into overbought territory.
- Analysis of current inflation data, including the connection between gas prices and restaurant same-store sales.
- Because the consumer is such a key aspect of our domestic growth, we breakdown the June Retail Sales Report, which on a headline basis, the report was good, but what we saw upon digging into it was far more interesting and confirming for our thematic investing strategy
All that and more, in what is a pretty jammed-packed Monday Morning Kickoff. Click below to download the full report:
