The U.S. economy seems to be humming along, with 2017 growth touching 2.3%, well above the 1.5% in the year before. The Bureau of Economic Analysis upgraded its estimate for fourth quarter growth to 2.9% from the advance estimate of 2.6% in January. The picture on the earnings front is just as rosy. Companies in the S&P 500 reported growth of 11.7% in earnings last year and analysts see that number growing by 18.4% in 2018, according to FactSet Research. #-ad_banner-#While market volatility has jumped lately on fears of a trade war, solid economic growth, and hope that the tax… Read More
The U.S. economy seems to be humming along, with 2017 growth touching 2.3%, well above the 1.5% in the year before. The Bureau of Economic Analysis upgraded its estimate for fourth quarter growth to 2.9% from the advance estimate of 2.6% in January. The picture on the earnings front is just as rosy. Companies in the S&P 500 reported growth of 11.7% in earnings last year and analysts see that number growing by 18.4% in 2018, according to FactSet Research. #-ad_banner-#While market volatility has jumped lately on fears of a trade war, solid economic growth, and hope that the tax cuts will drive earnings have supported stocks near highs. But it seems investors may be looking at the wrong metrics. Against good numbers at the broadest level, a recent release points to a new front of economic weakness lurking just under the surface. This factor has an overwhelming effect on the economy and could soon turn investor sentiment. Looking deeper into the data may show the only place for safety in what could become the end of the bull market. Are Retail Sales Hiding A Disturbing Trend? Retail sales in the United States fell for… Read More