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What Do We Really Want

January 18, 2013 – 6:10 pm

691.StockMarketA major news item out last night after the close of the market and other than the earnings news on Intel and GE, was the report on the fourth quarter growth rate for China. It bounced up to 7.9%. This was a change in direction. The third quarter was 7.4% and the second quarter last year was 7.6%. In fact this is the first time in two years quarter over quarter that the reading was higher not lower.

The U.S. economy is getting stronger at least in terms of what we had coming out of the summer months and now the Chinese economy is starting to show some life. We need to see that same thing coming out of Europe and in fact I think we will.

Nowhere however has there been a robust recovery and maybe that is a good thing. When economies begin to overheat, central banks start to tighten up interest rates and that spells the end of a stock market rally.

Let’s hope for continued slow growth.

Good Trading
Steve Peasley

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