When is the Bounce Coming?
Economic data in the US continues to be strong. And yet the QE removal correction continues.
On Monday we find that Dallas Fed Mfg. rose to +6.5 from -10.5 last month. This is 3rd regional manufacturing report in a row showing surprising strength (Empire State and Philly Fed being the others).
Here again, most signs of the economy are looking up. However, investors feel a need to re-align themselves in a hurry to a post QE world. And because that picture is fuzzy, many are assuming the worst leading to an unnecessary decline in stock prices.
So it shouldn’t be long until we find a new bottom between here and 1500 from which to start rising up again. And then we can celebrate good economic news with higher share prices… not the opposite as we see now.
Best,
Steve Reitmeister (aka Reity…pronounced “Righty”)
Executive Vice President
Zacks Investment Research
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