Industrial production growth in China slowed to 5.4% year over year in November, while retail sales grew 8.1%,
the lowest reading since May 2003. In Europe, services and manufacturing PMIs out of France, Spain, and the Eurozone composite all disappointed. (LPL)
U.S. retail sales strong. U.S. retail sales figures for November rose 0.2% on top of the upwardly revised 1.1% increase seen in October, topping forecasts and pointing to a healthy U.S. consumer. The better-than-expected gains may help to alleviate concerns about a slowing U.S. economy given consumer spending accounts for ~2/3 of GDP.
Worry is increasing and that could be a good thing. There are signs that sentiment is near a washout. For instance, the recent American Association of Individual Investors sentiment poll had the most bears since April 2013. Flows saw extreme panic last week as well, as according to Lipper data, weekly outflows of US-based stock funds was an all-time record last week ($46 billion). From a contrarian point of view, this could be a positive for a meaningful low to occur.
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.