Market and Economic Commentary - IMVA Market and Economic Commentary - IMVA

Market and Economic Commentary

 

3rd Quarter 2017
Summary: Overview

 

After three years of flat earnings, S&P 500 companies now appear to be delivering the best year-over-year earnings growth rate since 2011 and remain on target for double-digit progress in 2017.

The Purchasing Manager’s Index (PMI) and Non-Manufacturing Index (NMI) have made remarkable recoveries from the 2014 energy turndown.

U.S. imports and exports started to improve in early 2016 and have sharply risen.  That surge may be moderating but global economic conditions appear to remain healthy.

Economic data from around the world continue to suggest that a broad-based global expansion is continuing.  According to The Wall Street Journal, the manufacturing economies of all 45 countries tracked by the OECD (Organization for Economic Co-operation and Development) are on track to advance this year.

The technical conditions of the market remain supportive.   The Cumulative Advance/Decline line continues to make new highs along with price, and the market’s overbought condition has been worked off somewhat.

Volatility across asset classes, and especially in equities, has declined and stayed remarkably low YTD.  Periods of low volatility are generally linked to the business cycle; low unemployment rates tend to anchor equity volatility.

Download the full report in pdf here: IMVA Investment Review-October 2017

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