While earnings may be finding it hard to keep the pace of past success, the global economy remains in good shape.
Our market cycle indicators largely remain in the bullish camp, with a little improvement on the U.S. side and a little softening globally.
For the first time in a long time, leading indicators have turned up in the U.S. Plus, all indicators for manufacturing are encouraging as the global improvement in this category remains on track.
The soft patch of course is housing, which is not news. Capex focused on data centres doesn’t really care that much about the level of interest rates; the housing industry still does.
Overall though, still an encouraging foundation. That doesn’t rule out a corrective phase; as AI enthusiasm oscillates, so will markets. As long as the economic data holds up, weakness should be viewed as a potential opportunity.
This report is authored by CraigBasinger, Chief Market Strategist at Purpose Investments Inc.
Source : Charts are sourced to Bloomberg L.P., Purpose Investments Inc., and Richardson Wealth unless otherwise noted.
The author or his firm may hold positions in mentioned securities. Any opinions expressed herein are solely those of the authors, and do not in any way represent the views or opinions of any other person or entity .
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