Forecasting Surprises
What happens when the predictions are wrong? Is it time to panic? Is it time to ditch our strategy? It's a fascinating question because it cuts right down to the question of what it means to live in an uncertain world.
What happens when the predictions are wrong? Is it time to panic? Is it time to ditch our strategy? It's a fascinating question because it cuts right down to the question of what it means to live in an uncertain world.
How much inflation can the country afford before we’re in trouble?
When it comes to financial markets one thing you constantly hear is they hate uncertainty which is what is happening with the recent decline in stock market prices due to the coronavirus. And why exactly do the markets care about the coronavirus? They care because of its effect on global economic growth and on earnings for companies.
If you look just at the strength of companies in the S&P 500, earnings growth is looking to be above 19% and this is following over 24% in the 1st qtr. Consumer sentiment remains high, the Small Business Optimism index hit its 6th highest reading in history, the job market is robust, wages are starting to increase-things are looking pretty rosy. What hasn’t been fun is the market itself.
Before you pop open any champagne for New Year’s Eve, make sure that your money is ready for 2018.
This week marks the 30th anniversary of Black Monday, October 19,1987, when the Dow Jones Industrial Average fell 508 points and the S&P 500 saw a one-day loss of -20.5%.
