Winds of Change?
Posted on Wednesday, May 21, 2014
The first couple of months of 2014 nudged the S&P 500 to new all-time highs. Conventional wisdom says that the stock market typically looks about six to nine months ahead, so 2013’s very strong returns would suggest seeing a stronger U.S. economy this year. But economic indicators tell a mixed story, according to the editors at Investor Advisory Service.
What can we expect in the near term? General economic indicators through February are spectacular. Unrest in the Ukraine combined with Russian military action in the Crimea region caused some recent capital market hiccups, and in February the U.S. dollar declined almost 2% compared with the euro. The U.S. Bureau of Economic Analysis in late February revised its initial estimate for Q4 2013 GDP down from 3.2% to a more realistic 2.4%, which is more in line with the reality of higher year-over-year interest rates and the record-breaking Polar Vortex events of the most recent winter.
In the April issue of Investor Advisory Service, the editors delve deeper into what key economic indicators suggest for the first half of 2014 and how they could affect the decisions of investors adding companies to their portfolio. Click here to subscribe to IAS.