The United States: This chart shows sector contributions to all post-WWII recessions. The biggest component of most economic contractions has been deteriorating investment (fixed investment and inventories).
What were the causes of the pre- and post-WWII recessions? It seems that asset price collapses drove most early recessions, whereas the Fed’s policy tightening was the biggest driver of modern recessions.
The Eurozone: The euro area manufacturing expansion has accelerated.
Global Developments: Which currencies are the most overvalued/undervalued relative to the dollar? Note that while Greece and Germany both use the euro, the single bloc’s currency has a very different buying power in the two nations.
Equity Markets: This chart shows analysts’ target price increases by sector over the next 12 months.
Combining analysts’ forecasts for individual stocks results in a 9% increase in the S&P 500 over the next 12 months. Too optimistic?
Emerging Markets: Mexico’s stock market (via S&P/BMV IPC) hit a record high amid improving factory activity.
Food for Thought™: According to Bloomberg, “Europeans are outboozing the rest of the world”.
