Robert Barone
- Contributor, Forbes
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Lack Of Data Making Fed's Job Harder, But No Doubt Economy Is Slowing
For the week (ended November 14), the major indexes were basically flat (see table), continuing the weakness seen so far in November. The exception was the small cap Russell 2000 as it continued its retreat from its late October peak, with the tech-heavy Nasdaq not far behind. The consolidated reporting charts are for informational purposes only and should not replace the official reporting made available by each index, custodian, market and/or security.
Markets Turn Down: A Correction Or Something More Sinister?
As seen from the table, the first week of November has given back much of the equity market’s October gains (all in the case of the small cap Russell 2000) causing investors to wonder if this is the beginning of a long overdue correction, or something more insidious, such as the anticipation of an oncoming Recession (the incoming macroeconomic data have shown economic softness). Perhaps the now record length of the government shutdown played a role.
Equities At Record Highs Despite A Slowing Economy
The equity market continues to ignore the government shutdown (perhaps treating it as a positive) and, more importantly, the slowdown signals emanating from the economy itself. For the week ending Friday, October 24th, the euphoria continued with the major indexes all up in the two percentage point range for the week, putting the month of October, which had been lackluster, solidly in the green (see table). The three major indexes all closed at new record highs on Friday, a rare feat.
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