Category Archives: Context and Perspectives

The market is going great so no need to worry, right?

The market is going great so no need to worry, right?

There are weeks when sitting down to write this piece is tough because not much worthy of note has happened in the markets or the economy outside of the usual noise. This week, that was most definitely not the case. Thank God it is Friday – we all need a break. New Market Highs and […]

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Q1 GDP . . . Don’t Break Out the Champagne Quite Yet

Q1 GDP . . . Don’t Break Out the Champagne Quite Yet

This morning we received the first estimate for Q1 2019 GDP, and it looked at first glance to be considerably better than was expected with the economy expanding at a 3.2% annual pace versus consensus expectations for 2.3% and growth of 2.2% in Q4 2018. Just don’t break out the champagne quite yet as right away we see reasons to dig deeper.

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Boeing’s 737-Max issues highlight index construction issues

Boeing’s 737-Max issues highlight index construction issues

The construction and weighting of the indices that power the major market indices as well as ETFs make all the difference as highlighted by Boeing’s current 737 aircraft issues.

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Liquidity Trumps Fundamentals

Liquidity Trumps Fundamentals

Equity markets have once again diverged materially from fundamentals as the perception of the central bank put from the world’s biggest economies overrides fundamentals. I’ve been admittedly surprised by how long this has been going on and how wide the divergence has become, but we are seeing now seeing substantial overhead resistance level for the S&P 500 at a time when challenging fundamentals are growing.

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