This week’s potential market mover is the Institute for Supply Management and their business conditions reading on Friday. One interesting note is that this report will not be impacted by the two hurricanes like others have been recently. The U.S. is in the 9th year of its economic expansion. We have the Consumer Confidence Report on Tuesday and as previously stated, the business conditions reading on Friday. These reports are very important because they will show proof that the economy is actually still expanding, which is what the market needs.
There are two things occurring on the international front that could help American manufacturing. One is the third round of NAFTA talks starting in Ottawa over the weekend in which President Trump has a very pro-American push on the way it is being negotiated in terms of resolving disputes among the three countries. The second is a lot of the trade laws that came at the end of George W. Bush’s administration really favored a lot of American manufacturing and are continuing to do so. From an executive order point of view we are seeing Trump aiming at putting American business first. This could result in American companies being more competitive and, in turn, more profitable causing a good response in the market.
We want to emphasize the point on how your portfolio can be impacted by these decisions that are going on. If corporate earnings continue to move forward and we continue to see the market responding to that versus some of the crisis issues out there, then the 4th quarter could possibly have a lot in store.
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.
Economic forecasts set forth in this presentation may not develop as predicted.
The Institute for Supply Management (ISM) index is based on surveys of more than 300 manufacturing firms by the Institute of Supply Management. The ISM Manufacturing Index monitors employment, production inventories, new orders, and supplier deliveries.
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