The rise in interest rates, copper prices, and crude oil suggests stronger economic growth than the anticipated 2.5% by the end of next year, a rise in the dollar and pressure on bond yields, says Jeffrey Saut at Raymond James. The payroll tax reduction of 2% to 4.2 should add some $1,000 of disposable income for the average $40,000 - $50,000 per year wage earner. Barclays argues that non-U.S. investors are not shunning U.S. bonds, and last month’s sell-off was simply the market’s reaction to better-than-expected economic data.
Mark Luschini, Janney, Montgomery Scott.
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