While growing up back east in the Big Apple our family always had at least one quad-ped with a tail, better known as a dog. The one that was my favorite and best friend was a Chow and German Shepherd mix. He was brown and white and BIG whom we named Bear. He was extremely protective and would spring to attack mode when anyone even looked cross. Thing is, it wasn't until I was much older that I realized he'd spring to attack mode with anyone, anytime friend or foe, just never against us. I realized Bear was wise beyond even his dog years and adhered to the old saying, “you don't bite the hand that feeds you”. Some, and for me far too many, investors continue to gripe and get downright ornery about the current and very generous Federal Reserve monetary policy. A policy which arguably rescued the global economy, our capital markets and for many a lifetime of savings. So, no need for tail wagging or face licking just looking for an end to the teeth gnashing.
The US economy continues an improving trajectory at a speed of good not great. We are a near $17 trillion economy expanding at a 2 ½% to 3 ¼% annual growth pace. The US recovery is far more broad based and on firmer footing than our global partners. So, that being said let's just get right to it.
Where we are
Institute For Supply Management Manufacturing-ISM Manufacturing. ISM Manufacturing for February came in at +52.9% down -.6% from January's +53.5%. There was a general easing off the accelerator across the board, but 67% of the reporting manufacturers reported growth, 17% reporting unchanged and 16% reporting contraction. Respondents commented as follows: “West Coast ports is an issue for exporting” Food and Beverage. “The major concern for us is the ongoing situation with the West Coast ports” Transportation Equipment. “The dock delay on the West Coast is seriously impacting the supply chain” Computer and Electronic Products. “business in general is staying its course. Concerns abound over strike possibilities by West Coast Longshoreman” Machinery. You can see a clear trend here. The takeaways here. The +52.9% while lower is still solidly above the +50% mark which denotes growth. As well the West Coast Longshoremen strike has by now been resolved and the backlogs are now being dealt with and cleared.
