Growth Picture Improves

Despite a flattening in consumer confidence in the US, growth in the American economy improved in the third quarter of 2017. GDP for the second quarter was revised upward from 2.2% to 3.1%. Corporate earnings accelerated in the third quarter for the S&P 500 to over 17%. Consumer confidence which hit a 17 year high in March 2017, has since eased back modestly. The change in trend for consumer confidence is difficult to quantify but it is likely due to politics in Washington and the country’s inability to come together since the election.Read more

Growth Remains a Mixed Picture

The growth in the equity markets has been far greater than the growth in our economy since President Trump was elected. The S&P 500 logged another quarter of growth with the index advancing 3.1% in the quarter and advancing 9.3% year to date. MACM's dynamic growth portfolio also logged another good quarter of growth advancing 4.4% in the quarter and 13.5% year-to-date. This is not unusual as markets seem to perform the best during periods of slow growth with low inflation and friendly monetary policy. While this is true, we must note that the equity market rally paused in 2014 and 2015 when corporate America fell into an earnings recession and slow growth was replaced by no growth.Read more

Trump – Great Medicine for the Economy & Markets

Whether you look at financial market performance, consumer confidence, the purchasing manager survey, or unemployment data, it is clear that Trump has been great medicine for the globe’s economies and financial markets. The election of Donald Trump has brought higher confidence to consumers, investors, and unemployed Americans. The Trump effect has also played out in international economies. The globe is now in full expansion mode according to the latest purchasing manager index readings.Read more

Rising Consumer Confidence Leads Equity Markets Higher

2016 was a volatile year for the global economy and the world’s financial markets. The year began with the markets and the economy drowning in pessimism, but ended with consumer confidence at a 15 year high and the DJIA knocking on the door of 20,000. One might say that investors have blind optimism in pushing the DJIA to all-time highs given the fact that significant obstacles remain in the path of our economy. Mr. Trump is likely a big part of the reason for this optimism. His campaign identified and shouted from the mountaintop the problems that have handcuffed the globe’s economic superpower for the last decade.Read more

Post-Election Trump Looks a Bit Different than Pre-Election Trump

Industrial and Defense Stocks have led the Market to new highs as consumers and investors have embraced the post-election statements of Mr. Trump optimistically. Mr. Trump’s poise and dignity, that seemed lacking throughout the campaign, has emerged, and as a result optimism as developed throughout America and the world. Financial markets have rallied globally. The Dow Jones industrial average broke 19,000 for the first time and most industrial based stock indices are at new highs. Contrarily growth indices have encountered fear-based obstacles and have lagged the industrial based leadership in the market. Since the election defense and aerospace, heavy construction, and bank stocks have led the market and have advanced double digits, despite virtually no confirmation from Wall Street analysts with higher revisions to earnings for these groups.Read more