Silver Linings in Economic Clouds
Most of the recent data has spelled stall speed or recession for the US economy. However, there are some silver linings in the storm clouds including:
1) Retail Sales: Home Depot, Staples and Target all provided impressive earnings beats with higher guidance this week.
2) Industrial Production: Tuesdays report handily topped expectations and shows some signs of life.
3) Lower Oil Prices = Stimulus: It is said that each $1 decrease in oil prices translates into a $10 billion boost to the US economy. So the latest drop could be good for $100 billion+.
4) Accommodative Fed: With rates near zero, it entices people to put more money to work in the economy which can aid growth.
5) Earnings Guidance Remains Solid: There has been more lowered outlooks lately then we have seen in the last couple years. But overall, guidance remains positive which means that companies are not yet seeing a slowdown in activity.
Yes, I have been beating the recession drum of late. But because economics is a soft science means that you can never be 100% sure of the outcome. So I still think that the preponderance of the evidence points to a recession. Yet I am very aware of the positives that exist which keeps me from going whole hog short at this time. If more positives emerge, then I will slap on a Bull suit in the blink of an eye. However, if the above positives start fading away, then best that we all prepare to profit from the ride down to lower, lows.
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Executive VP, Zacks Investment Research
Pulled from TV!
I recently produced a 60-second "political" television commercial that a major network and cable provider refused to air.
What, exactly, could be so offensive that it would cause networks like Fox and even the folks at DirecTV to pull this off the air?
It's a scary situation, and I'll let you decide for yourself whether or not you think this information should be made public.
You can get the full story here.
Today's Top Stories: Thursday- August 18, 2011
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