Growing disconnect between the economy, falling earnings and aggressive expectations
Last week, the herd mentality on Wall Street returned to the issues we’ve been talking about for the last several weeks here in the Monday Morning Kickoff: the growing disconnect between the global economy; falling earnings in the current quarter; aggressive earnings expectations in the back half of 2016; all with an already stretched stock market valuation.
Moving into the summer season — a period where light trading volumes are the norm — and we’re looking at a time where any bad news is likely to whipsaw the market and bring back renewed volatility. Time to buckle up and dig into the data so we’re all prepared . . .
In this week’s Monday Morning Kickoff:
- Confirmation over the market mood becoming far more nervous than a few weeks ago can be seen in the CNN-Money Fear-Greed Index as well as in the movement of the iShares Barclays 20+ Yr Treasury Bond ETF (TLT) . . . Read more
- Companies will be entering their end of quarter quiet periods over the next few weeks. What this means is before too long we’re likely to start hearing earnings pre announcements, and odds are more of them will be negative than positive. . . . Read more
- The economic data picks back up in full force this week. We dig into the data we’re looking for, as well as what we expect the impact will be on the odds of the Fed hiking rates . . . . Read more
