With the S&P stuck in a range for a month, a lateral correction may have already unfolded.
-Mark Luschini, chief investment strategist, Janney
- With the S&P stuck in a range for a month, a lateral correction may have already unfolded. Despite some recent disappointing data, the U.S. recovery has become increasingly secure. The combination of modest economic growth, low inflation, and aggressive monetary stimulation will continue to support equities.
- U.S. Economic News – The housing recovery is on track and will continue to support GDP growth in the coming quarters and with low inflation below the Fed’s LT target, suggesting it can maintain its ultra-easy monetary policy.
- Global Market Conditions – Leading indicators project improvement in global growth and data suggests the global economy is only halfway through its current growth cycle. Global inflation meanwhile remains low.
- The percentage of bullish individual investors is back to March 2009 levels, despite improving macro conditions.