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  • The Money versus the Kabukis Q1, Q2 2017

    by coldwarrior ( 87 Comments › )
    Filed under Economy, Open thread at May 17th, 2017 - 5:45 am

    WASHINGTON—U.S. industrial output rose sharply in April, the latest evidence that economic growth is picking up following a lackluster start to the year.

    Industrial production—a measure of output at factories, mines and utilities—jumped 1.0% from a month earlier, the Federal Reserve said Tuesday. That was the largest gain in more than three years.

    The strong showing follows a string of upbeat April indicators, including the unemployment rate falling to its lowest level since 2007, solid consumer spending gains at online sellers, restaurants and other retailers, and existing-home sales climbing at their fastest pace in a decade. The broad-based growth across key sectors of the economy suggests healthy demand from consumers and businesses, reversing some gloomier readings from earlier in the year.

    “If you filter through the noise and look at the broader trend, things are starting to get a little better,” said Richard Moody, chief economist at Regions Financial Corp.

    Tuesday’s report from the Federal Reserve showed manufacturing output, the biggest component of industrial production, posted its strongest gain since early in 2014, pushing the Fed’s manufacturing index to a new postrecession high.

    and

    The S&P 500 and Nasdaq both climbed to fresh record highs on Tuesday despite the latest controversy over reports that President Trump shared classified information with Russia’s foreign minister.
    Even though Trump’s stumbles threaten to further delay the tax cuts investors are craving, CNNMoney’s Fear & Greed Index is firmly in greed mode. Caution seems to have disappeared as evidenced by the VIX volatility index, which is at 23-year lows.
    So, what gives?
    After all, stocks soared because of hopes over President Trump’s promises of tax reform and deregulation. So, why aren’t markets freaking out now that the administration is being bogged down by controversy, such as the firing of FBI Director James Comey.
    The mystery can be explained by the fact that corporate profits — a cornerstone for stock prices — have enjoyed a renaissance this year following a prolonged “earnings recession.” (—ummmm, no. that is like saying that the sky is blue because trees are green, see my comments)
    Profits from S&P 500 companies surged by 14.9% during the first quarter, the fastest rate since 2011, according to CFRA Research. That’s a far cry from the painful decline of nearly 7% experienced at the start of 2015, back when stock prices were doing little.

    From above: (—ummmm, no. that is like saying that the sky is blue because trees are green, see my comments)—. Let’s Continue: There are corporate profit BECAUSE of confidence and optimism in the whole population of America iand they are bringing MONEY into the said market. This is then like saying that the sky is blue because blue is scattered by air molecules more than other wavelengths. It comes down to this, Trump is doing what is good for American business. And, no one outside of the i95 word whore corridor cares about the latest act in this kabuki theater production of ‘Get Trump!’. Things are starting to go well in America because the market; (everyone who buys and sells anything) are confident that there is and will be growth BECAUSE of Trump’s America first policies and the Market does not see these actions and policies ending anytime soon or even later.

    an all of this is occuring WITHOUT QE.

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