INSIGHTS
MAR
4
WEEK AHEAD...
Sequestration? Another in a list of things investors put on their radar and when the time comes, they shrug off. Issue was made of “massive” spending cuts affecting growth and when you shake off the flak coming from both sides, its just 80 billion dollars.
Granted that’s a huge sum, but in relation to a 4-trillion dollar budget, its not that significant. This isn’t meant to belittle the people this will affect, just a look at the bigger picture. In the bigger picture, our economy can absorb this and continue to grow.
What potentially can happen is opportunity. Wherever cuts are made, the private sector has the opportunity to get something out of it. We are firm believers of the capitalist system and wherever someone loses, there is someone who gains. Stop the bellyaching and look for an opportunity. That’s our Motto.
While the markets build a foundation in near record territory, we still expect new highs to be made on all the major averages within a short timeframe. There is still money waiting to be invested or reinvested and equities appear to be the best place right now for that money.
Some money may come out of the municipal bond market and head straight to equities and this alone can carry the markets to new highs. Considering that more than a few municipalities may have trouble covering their debts this isn’t as far fetched as it may sound.
The coming week may be short on major data points; its still has some interesting things to watch.
As we have said in the past, we are not big fans of the ADP Employment report, its still an interesting read and it confirms other data. The consensus is around the 173,000 range and we expect it to be better than that. Factory orders will be out on the same day and we expect it to be positive and hopefully it will begin a more positive uptrend. This always bears watching considering that it is hard numbers. Cold facts about the strength of the economy.
Jobless claims and the Employment situation round out the week and we still feel strongly that these numbers will continue to improve.
As with any week, the situation in Europe can have a short-term impact on US Equity markets. However, our feelings still remain the same. Any major dip in the market is a buying opportunity and we fully expect to see those dips over the next two weeks.
Granted that’s a huge sum, but in relation to a 4-trillion dollar budget, its not that significant. This isn’t meant to belittle the people this will affect, just a look at the bigger picture. In the bigger picture, our economy can absorb this and continue to grow.
What potentially can happen is opportunity. Wherever cuts are made, the private sector has the opportunity to get something out of it. We are firm believers of the capitalist system and wherever someone loses, there is someone who gains. Stop the bellyaching and look for an opportunity. That’s our Motto.
While the markets build a foundation in near record territory, we still expect new highs to be made on all the major averages within a short timeframe. There is still money waiting to be invested or reinvested and equities appear to be the best place right now for that money.
Some money may come out of the municipal bond market and head straight to equities and this alone can carry the markets to new highs. Considering that more than a few municipalities may have trouble covering their debts this isn’t as far fetched as it may sound.
The coming week may be short on major data points; its still has some interesting things to watch.
As we have said in the past, we are not big fans of the ADP Employment report, its still an interesting read and it confirms other data. The consensus is around the 173,000 range and we expect it to be better than that. Factory orders will be out on the same day and we expect it to be positive and hopefully it will begin a more positive uptrend. This always bears watching considering that it is hard numbers. Cold facts about the strength of the economy.
Jobless claims and the Employment situation round out the week and we still feel strongly that these numbers will continue to improve.
As with any week, the situation in Europe can have a short-term impact on US Equity markets. However, our feelings still remain the same. Any major dip in the market is a buying opportunity and we fully expect to see those dips over the next two weeks.