The Latest Market Commentary From Our Strategists

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Daily Blog

Friday, December 8, 2017

The U.S. economy added 228,000 jobs in November and the unemployment rate is 4.1%, a 17-year low. Job gains were broad-based, but notably strong in education and health care categories as well as in construction and manufacturing. The hiring in the manufacturing sector is an affirmation of the extremely robust PMI’s we have been seeing over the last several months. So what’s not to like? Wage gains. Despite the tight labor market, wages inched up only a mere .2%. Companies are bound and determined to hold down costs and therefore reluctant to invest in their employees. Corporate tax cuts should help jumpstart corporate investment, wages and productivity – but that will take time. Meanwhile, the market continues to grind higher on a steady stream of upbeat economic data.
Please follow the non-farms payroll report on page 63 of the Global Perspectives™ book.

Weekly Commentary & Statistics

Monday, December 11, 2017

U.S. bourses slid as Congress grappled with the details of tax reform, but regained momentum on encouraging jobs data and news that the U.K. and European Union had agreed on Brexit terms. Gold was off a lot, oil a little. The 10-year U.S. Treasury yield closed up slightly at 2.38%.

Monthly Commentary & Outlook

October 2017

Nothing — nothing bad, that is — has been able to stick to these Teflon markets, which have demonstrated an astounding, maybe even confounding, resilience.

  • These “Teflon” markets have been perpetually repelling bad news of all stripes
  • Market resilience is further bolstered by strong fundamentals worldwide
  • Pro-business tax cuts are the elixir that may shift this market into high gear
  • Central banks may be unintentionally blocking progress on reflation
  • Prudent diversification protects against upside and downside risk

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