Good missive today from Tom Sowanick of Clearbrook Financial arguing that most investors are filtering out good economics news, ignoring the Fed’s highly stimulative econo-therapy, and their portfolios are therefore not aggressive enough:
Consider that the recession mongers feasted on last month’s anemic employment gains of only 18,000 and then gorged themselves on the unemployment rate increase from 4.7% to 5%. Since then, initial unemployment claims have fallen every week and are currently at their lowest levels since last May. In addition, this morning’s ADP employment report came in at 130,000, versus the consensus estimate of only 40,000. This data strongly suggests that either last month’s employment report will be revised higher, or this month’s report (due out on Friday) will be stronger than the consensus expectation of 65,000.