Reity sigue siendo alcista .....

[H. LEIN]

Day 1 vs. Day 365?

One of the classic investment sayings is:

"As January goes, so goes the year".

If that's true, then the hefty gain from the first session of January foreshadows good things to come. Helping the cause was all 3 manufacturing reports coming in ahead of estimates. Most important was the ISM Manufacturing Index powering up to 54.7 with the forward looking New Orders component soaring to a two year high of 60.2.

This news is so good that it put some welcome starch into the Q4 GDP Now estimate. That indicator moved up from +2.5% to +2.9% on the strength of this announcement plus some upside found in Construction Spending.

Manufacturing strength is not just confined to the U.S. as the Global Manufacturing PMI rallied from 52.1 to 52.7. This bodes well for improvements in the world economy and gives very little reason for bears to come out of hibernation.

Stay bullish my friends!

Best,

[Jano314]

Thank You very much, indeed.

[H. LEIN]

Wait and See Mode

Stocks leapt again on day 2 of the New Year. And why shouldn't they as most signs point to a healthy economy in 2017.

Wednesday offered another clue of economic prosperity in the Redbook weekly retail sales report with the best showing since January 2016. That is on top of the already sparkling manufacturing data that was offered up on Tuesday.

The Fed even helped the bull party by saying that there is "considerable uncertainty" around the effect of Trump administration policies on the economy. Yes, one could read that in an ominous way if they want. However, the prospect of lower taxes and regulation is hard to spin in a negative way for the economy.

The best view of this for investors is that the Fed is now in "wait and see mode". Meaning they will not raise rates again until they have greater certainty of the economic outlook.

The longer they wait to act... the lower the rates in the interim... the better for stock market valuations.

Best,