Today is going to feature two economic data points that could bring some big volatility. First we get the monthly Payroll Employment Report at 8:30am, and then we get the ISM Manufacturing Survey at 10am. Remember, it was the ISM last month that created a sharp decline in the S&P 500 (SPX) because it showed a contraction in manufacturing activity. Again, you know our thought there – we ARE in a manufacturing recession globally and have been for the better part of the year but are beginning to come out of it. All this data does is confirm what we know – this is the 3rd mini-recession of the cycle.
Our point is that if these numbers do create any weakness – we believe History and Fed suggest buying any weakness. In yesterday’s post we noted that since 1950, if the SPX was up over 20% (7 occurrences) it tended to be positive through year end and the next year. This is a really important post to remember if we do get increased volatility with the economic data.
Past performance is not a guarantee of future results. Index returns are unmanaged and do not reflect the deduction of any fees or expenses.
Sign up for more access!
Access additional content across the site when you sign up for an account.