(As of 7:20 am PST)
Stocks are lower again this morning after a mixed batch
of economic data has investors speculating on whether or not the Fed will taper
out of next week’s meeting. Encouraging
retail sales data in November indicates holiday shopping is off to a good start. Retail sales rose 0.7% in November, the
largest increase since June and consistent with many recent economic reports
that suggest the US economy is improving.
Jobless claims jumped by a whopping 68,000 last week, worse than
expected but overshadowed by the retail sales report. A narrative has been forming for weeks now
that the US economy is improving at such a pace that the Fed’s stimulus
programs are likely to end by the end of the year. The easy-money addicted market has developed
a “good news is bad news” mindset and we’re seeing that again today. Gold is getting crushed today, down
2.5%. After a disappointing year for the
precious metal, the recent downward pressure could be from tax loss selling as
investors look to offset large capital gains on the year. Taper notwithstanding, a short term pullback
could be healthy for this overheated market and could prove to be a positive
for investors in the long run.
No comments:
Post a Comment