Sooner or Later, Earnings Have to Be Squared Up With Reality
Sometimes it really does feel like déjà vu all over again to quote the infamous Yogi Berra. Yet again, we had a week with the debate over Fed rates dominating the headlines and whipsawing the market back and forth for reasons we can’t understand.
The data, to us, is clear as day as to what, if anything the Fed should do, and in our opinion, we as investors should be more focused on anything other than the Fed. Heck, as thematic investors, we would get more out of the story about a runaway robot arrested at a political rally in Moscow . . . read more >> (Go ahead, click on it, I know you want to!)
At the same time, we have earnings expectations that are still significantly detached from reality — we’re supposed to believe that after falling for six consecutive quarters, the S&P 500 group of companies are suddenly going to pull an about-face and deliver over 8% for the back-half of 2016?
Sooner or later, the realities of the slowing economy will come home to roost, and when it does “whoa Nellie!” Â Yes, folks, market volatility is going to be the name of the game in the coming days and weeks.
Chris Versace
Chief Investment Officer
Tematica Research
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- Fed Board Lael Brainard — Keep Calm and Carry On
The week after Fed Reserve Bank Boston President Eric Rosengren seemingly single-handedly torpedoed the market with his comments, a calm and cool Lael Brainard was able to soothe anxious investors with her comments . . .  Read More >> - But . . . and there’s always a but . . . maybe we shouldn’t be so calm
More than a few pieces of data came in over the transom that raised eyebrows and concern over the ability of the consumer to sustain even the low level of economic growth we’ve seen recently . . . Read More >> - How close are we to the “American Dream”?
This week we’re heavy on housing data and get a peek into how many of us are living the American dream with new and existing home sales data for August . . .  Read More >>
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