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Taking a Step Back…In Order to Leap Forward?

February 20, 2013

Housing continues to be among the strongest sectors of the U.S. economy. This week gives us more
data on the performance of one of the few dependable tailwinds to growth.
-Jason Pride, director of investment strategy, Glenmede



Taking a Step Back…In Order to Leap Forward?

- Housing continues to be among the strongest sectors of the U.S. economy. This week gives us more
data on the performance of one of the few dependable tailwinds to growth.

- Some are wondering whether a serious correction is in the works, that perhaps the “sell in May”
dynamic that would have worked so well in the past few years might come earlier in 2013. Leading
indicators show no convincing signs of a dip as of yet – last week’s Empire Manufacturing index was
unexpectedly strong; we get an update on the Philly Fed and Markit’s Flash PMI this week.

- Exit strategy discussions are beginning at the Fed. Minutes from the FOMC’s January meeting are likely to reveal ongoing debate regarding the timing of an exit from their stimulus, including what to do first. Mid-2015 seems the most likely timing of the first rate hike, but ending QE purchases could come earlier.

Also included:

 

  • The Game of Chicken Continues: Both political parties continue to talk up their respective views on the sequester, but House Republicans have announced they will not act first
  • European Risks Remain, Despite Progress: Spain pivotal, Europe's progress in 2012 helped

 

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