Timely and Relevant News: Looking Forward
As we look ahead to the summer months, we can’t help but think what a challenging year it has been so far.
At the same time, we are encouraged by the resiliency and accelerated innovation among US businesses and the efforts to support our communities. The recent strength of the financial markets appears to be looking beyond continued economic weakness.
It is important to remember that the stock market looks forward.
Economic numbers are still negative. However, they aren’t as bad as they were a month ago and that’s usually been a prelude to things starting to get better. Manufacturing activity contracted in May, according to the Institute for Supply Management Purchasing Managers’ Index, but it was better than the prior month for the first time since January. New home sales actually rose in the most recent US Census Bureau data for April, when they were widely expected to collapse.
Small businesses are anticipating better times ahead, too.
In a recent survey by the National Federation of Independent Business (NFIB), small businesses expressed the most optimism about the economy improving compared to any time in the last year and a half. That optimism may lead to retaining or rehiring workers and restocking inventories.
While we may still experience bouts of volatility, the recent gains in the S&P 500 Index are not out of character and could mean better times are ahead.
Like us, the markets are seeing things to look forward to.
Consider the recent rally as the stock market’s version of anticipating dinner out with friends, enjoying a ballgame or planning a vacation. These may not be right around the corner and there may be setbacks along the way.
If you have any specific questions, we welcome you to call us at 302.234.5655 or email us at contactus@covenantwealthstrategies.com to set up a mutually convenient date/time to speak.
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LPL: Tracking # 1-05018220