Today we will be discussing global and domestic events that can impact your portfolio along with other economic growth news.
Positive economic growth in Europe
For the first time across the board Europe is starting to see growth again. There are four reasons for this:
- Their currency is much weaker so they can sell more products. Europe is also experiencing lower oil prices which will help their GDP about 1.5%
- Their version of quantitative easing starts this week
- Deposits in European banks are starting to grow and banks are making more loans
- For the first time since 2007 the European Commission is forecasting positive growth for all members of the European Union
Negative economic growth for China
Over the weekend China cut its interest rates by 25% basis points because of deflation and property growth. We are all still in agreement here at fi-Plan Partners that deflation is and will continue to be an issue.
February’s economic growth
Last week was a mixed bag in the markets but the month of February was excellent as consumer spending grew 4.2 percent which is the highest in four years. We contribute this to lower gas prices and job growth. While there are no guarantees, we believe March could be another good month.
Looking at this week
Besides watching where China will forecast its potential growth, we will be watching the PCE report (Personal Consumption Expenditure), which the Fed likes to watch for inflation. There are four Fed governors speaking this week in Congress which will be a Q & A and interpretation of what the Fed said last week. Janet Yellen will speak on the regulation of New York State banks but the Q & A will likely be more lively. We will also be watching the weekly jobless claim numbers and the Jobs Report. Globally, Germany reports its retail sales and the Purchasing Managers Index in Europe with be reported. If it’s over 50, it means expansion and if it’s under 50, it means contraction.
NASDAQ has hit a new high but that doesn’t mean it cannot go higher. We are watching the down side even as the S&P 500 is in the 2060-2070 range where buyers normally come in to the market.
Please send us your comments and questions or topics you’d like us to discover. We like to keep you updated.
Greg Powell, CIMA
Email Greg Powell here
fi-Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. fi-Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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