“Our house view on the U.S. economy is no secret. We remain bullish on U.S. growth.”
If you’ve been following Market Edges, our weekly macro newsletter, you already know this.
Want to know why #GrowthAccelerating continues?
Looking for top ETF ideas that stand to benefit from this bullish growth trend?
Here’s a taste of what you need to know…
A key excerpt from this week’s Market Edges:
“There was more corroborating #GrowthAccelerating evidence this week with Industrial Production notching a 37-month high and up 3.56% year-over-year. We also continue to see follow through on the corporate level with S&P 500 earnings up +13% so far this earnings season. Meanwhile, the 10 companies of the Nasdaq 100 that have reported have shown aggregate EPS growth of a mind boggling +82% y-o-y.”
If year-over-year EPS growth in the S&P 500 holds, it would mark the sixth consecutive quarter of earnings growth (after five straight quarters of earnings recession from 2Q 2015 to Q2 2016). Earnings comps get particularly tough in 1Q 2018 (when in 1Q 2017 year-over-year EPS growth hit 14.5%), but this data won't be reported until April of 2018. Stay tuned.
Here's how the S&P 500 is breaking down by year-to-date performance:
Key takeaway: #GrowthAccelerating sectors, like Consumer Discretionary and Technology, are trouncing slow growth/yield-sensitive sectors like Utilities and Consumer Staples. We think the growth accelerating trend continues in 2018 and reflation ultimately peters out.”