" You know that you are going to have a bad tax session when you walk into the office and find out your tax preparer committed suicide."
~ Yours Truly
The Professional Opinion
S&P 500 Index: 1169.43
Instead of leading off with the LEI, Bob points out that the market has registered mid-term off-presidential election year bottoms in every case during the past 50 years. Following these bottoms, significant market rallys have taken place following each off-election year bottom, and that is noteworthy.
The next two pages in the newsletter illustrate the trend.
Bob's target range for the S&P 500 index now extends in the mid to upper 1200's range. These numbers may go higher buy it depends on the sustainability of the market recovery and the ability of the fed to correctly remove excess liquidity from the economy without doing more damage to same.
Ongoing Problem - Flat M2 Growth
What is M2?
M2 represents money and 'close substitutes' for money.
Economists use M2 to quantify the amount of money in circulation and in explaining economic monetary conditions.
M2 is also key economic indicator used in forecasting inflation.
What will fix it?
1. Banks need to start lending.
2. Commercial and Industrial loans need to improve. Companies are more interested in deleveraging than in borrowing to expand their businesses.
When will it be fixed?
Not any time in the near future.
The economy is turning around so stay fully invested and buy on the dips.
I was going to say that this is fair representation of our current leadership in government but I haven't yet figured out how to do that without insulting the turkeys.