What the Market May be Telling Us About the Economy
We’re up 9% off the #Brexit bottom on June 27. What is the market saying? Here are some possibilities:
* Britain is going to be able to strike important economic accords with their trading partners on the Continent.
* Second quarter corporate earnings may be better than we’ve expected. Last night #Microsoft reported surprising growth across most of their business lines including their PC related businesses. This probably would not have happened in a weakening global economy. (Let’s see how Intel earnings look tonight.)
* Institutional investors may be developing more confidence in the #Fed ‘s ability to manage monetary policy in this period of transition.
* These same investors may be less concerned about the outcome of the #election. (The conventions could still provide some surprises.)