The S&P 500 is just an extension of policy rather than a means to value companies. The Fed controls the price of money and stocks are just extensions of dollar liquidity. The S&P 500 price is more than twice the level it would have been if we were to exclude the price change that occurred on Fed days

Source: Stiefel



September’s CPI provided further evidence that inflation is decelerating into year-end, suggesting that the Fed’s preferred metric — the core PCE deflator — will likely slip below 2% in the coming months

Despite rebounds in apparel prices and medical care in September — segments that weighed on the pace of core inflation in the previous few months — core CPI failed to bounce back from the prior month’s lackluster pace, as a sharp declines in auto prices (both new and used) limited overall price gains


China’s exports delivered a large upside surprise in September, returning to double-digit growth. The increase may reflect front-loading by exporters before the latest tranche of U.S. tariffs imposed in late September, and ahead of the long holiday break at the start of October

According to Bloomberg’s analists, such strong export momentum isn’t sustainable. Trade headwinds are substantial, and could strengthen in the months ahead, imposing a drag on growth


Industrial production in the euro area picked up in August after two months of contraction. The increase is welcome because it goes some way toward unwinding the slippage recorded in the prior two months. But it won’t be enough for the sector to add meaningfully to growth in 3Q, unless there’s another large rise recorded for September


Source: Bloomberg

Important News

  • The IMF has downgraded its global growth forecasts, due to the impact of trade tensions on economic activity. In its latest World Economic Outlook released on Tuesday, the global economy is expected to grow at 3.7% this year and in 2019, down 0.2% from its earlier projection in April
  • German exports unexpectedly fell in August, reflecting the cooling in the global factory sector

Source: Bloomberg


Indicies and Equity Sectors

The information provided has been compiled with the utmost care. WMM does not provide any guarantee (including resposability to third parties) regarding the accuracy, updating, reliability and completeness of the published contents. Furthermore, the published content does not constitute a solicitation or an offer to use the services of WMM, nor does it constitute any form of advice