My father says don’t confuse activity with accomplishment. Markets did just that yesterday with another 500 point swing that brought us back to the flatline to end the day.
According to NFIB, their Small Business Optimism Index in November registered a 104.8 reading, a modest decline but nonetheless continuing an exceptionally strong two-year trend. Expected Business Conditions and Expected Real Sales accounted for slightly more than half of the decline.
Bonds have done their job. Over the past month while the S&P 500 Index has lost 5% on a total return basis, Treasuries have gained 2% based on the broad Bloomberg Barclays Treasuries Index. Does that mean sell stocks and buy Treasuries? I don't think so. However, this latest performance does underscore the value of moving up in quality with fixed income allocations at this stage of the business cycle. (LPL)
Producer Price Index ticked up 0.1% MoM in November but was down sharply from October's 0.6% increase thanks to falling gas prices. (LPL)
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.