Stabilization in a recession? Maybe.
(Sustainable) Positive inflection in the Industrial Sector? Nope.
Being long US Equity Beta now (for a trade), I basically have to hope for the only real catalyst for stocks – a more dovish (Down Dollar) Fed.
1. Industrial Production
Down -0.4% m/m and accelerates to the downside to -1.4% y/y = 9 consecutive months of negative y/y growth. Deceleration across all major sub-aggregates.
2. Capacity Utilization
Down, Again. Declining -30bps sequentially and -1.7% y/y = 15 consecutive months of negative y/y growth
I guess Industrial Production growth and/or demand has not "bottomed."
