Summer financial markets sag
Summer sale mark-downs are underway. At the same time that there is confidence fatigue in the U.S., due to what seems like a flatlining of growth in recent weeks and the general opinion that corporate earnings season will be lackluster, the dollar is strengthening and gold is declining day in, day out. The U.S. sheen as a global safe haven is coming back even as U.S. investors are growing more cautious. Does that make sense?
Maybe the heat has just gotten to us. Investors and consumers have perhaps become tired of trying to be optimistic. The political scene does not help at all, as petty fights break out in the election campaign and in Congress, all immaterial as far as laying the groundwork for growth. In fact, the politics on both sides is just depressing, wasting time and leading us nowhere.
The big events of tomorrow are new growth numbers for China's economy and the 2Q earnings report and lengthy conference call by JPM, all before the market opens. China's numbers are critical for commodity market forecasts, and that of all tangential industries. JPM's trading loss and outlook have been weighing on the market, in this opinion, more than has been realized and clarity there will be a relief. That assumes no more surprises and a way out of the bad trade.
Warren Buffett was surprisingly out of optimism this morning on CNBC. He wasn't exactly negative but he noted that there has been significant decline in growth dynamics, as in none, over the last six weeks. He has no explanation as to why that is the case, just that the slowdown is an observed fact.
As noted at the outset of this post, summer mark-downs are underway. Barring significant bad news of some sort, this sale will at some point draw in more shoppers to the equity markets. When is the question, but erring on the side of caution until it's clear is worth giving up a few potential bucks of gain.
Maybe the heat has just gotten to us. Investors and consumers have perhaps become tired of trying to be optimistic. The political scene does not help at all, as petty fights break out in the election campaign and in Congress, all immaterial as far as laying the groundwork for growth. In fact, the politics on both sides is just depressing, wasting time and leading us nowhere.
The big events of tomorrow are new growth numbers for China's economy and the 2Q earnings report and lengthy conference call by JPM, all before the market opens. China's numbers are critical for commodity market forecasts, and that of all tangential industries. JPM's trading loss and outlook have been weighing on the market, in this opinion, more than has been realized and clarity there will be a relief. That assumes no more surprises and a way out of the bad trade.
Warren Buffett was surprisingly out of optimism this morning on CNBC. He wasn't exactly negative but he noted that there has been significant decline in growth dynamics, as in none, over the last six weeks. He has no explanation as to why that is the case, just that the slowdown is an observed fact.
As noted at the outset of this post, summer mark-downs are underway. Barring significant bad news of some sort, this sale will at some point draw in more shoppers to the equity markets. When is the question, but erring on the side of caution until it's clear is worth giving up a few potential bucks of gain.
posted by John Borden at 11:29 AM
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