Happy First Day of Spring and Fed Day! We hope the vernal equinox brings us sunny outcomes for the markets and the impending FOMC announcement. The number of S&P companies in a “no buyback” period will ramp up to as high as 80% leading into April. All but three sectors were hit by negative earnings growth last quarter. Who funds the US budget deficit? Historically, weak foreign demand for Treasuries and the Fed's balance-sheet reduction left the U.S. relying on domestic private-sector investors. The market believes that the Fed is finished with rate hikes. What do we mean by "the U.S. is the best house in a lousy economic neighborhood"?
1. The surge in U.S. companies buying back their stock is soon to go on a seasonal hold as ~80% enter their blackout period (no buybacks).
Source: Deutsche Bank, as of 3/19/19
2. An update on U.S. equity sector performance...
Source: Thomson Reuters Datastream, as of 3/20/19
3. Let's hope the FED is not in a "rebellious" state of mind...
Source: PWM- AA&MR, Bloomberg, as of 3/20/19
4. "To the moon, Alice" or will this mean revert?
Source: Datastream, as of 3/20/19
5. This sums up how the U.S. is the best house in a lousy economic neighborhood.
Source: WSJ Daily Shot, as of 3/18/19
6. Yet the markets keep grinding higher...
Source: Bloomberg, as of 3/19/19
7. And how is this global slowdown effecting earnings?
Source: Thomson Reuters Datastream, as of 3/13/19
8. One of my favorite questions answered...
Source: Deutsche Bank, as of 3/20/19
9. Is the current tax law stifling home ownership?
Source: John Burns Real Estate Consulting; as of 3/19/19
10. Have we seen the worst?
Source: Datastream, as of 3/20/19
Are you following us here on the Blog and not on LinkedIn? Follow Beaumont Capital Management (BCM) for conference information, firm-wide updates, and more!
Disclosure: The charts and info-graphics contained in this blog are typically based on data obtained from 3rd parties and are believed to be accurate. The commentary included is the opinion of the author and subject to change at any time. Any reference to specific securities or investments are for illustrative purposes only and are not intended as investment advice nor are a recommendation to take any action. Individual securities mentioned may be held in client accounts.
