by ogordained

UNITED STATES

• The Markit PMI manufacturing activity index is trending higher
• Markit PMI price indices keep strengthening, pointing to higher inflation ahead
• New home sales are near the 2-year lows while inventories are climbing
• The S&P 500 gave up 3% and is now down for the year
  • Concerns are growing about a slowdown in earnings growth, tariffs, higher rates, a stronger US dollar, and global economic weakness
• The NASDAQ is down more than 10% putting it in correction territory
  • The semiconductor sector is having its worst month since the Great Recession
• The VIX closed above 25 for the first time since February
• There are two ways to look at this, stocks are either very cheap right now or forecasted earnings estimates are way too optimistic
  • Companies focused on Research & Development are being punished in favor of frims known for share buybacks
• Small cap stocks are nearing bear territory
• I think it’s very important to be aware that it’s individual investors “buying the dip” as institutional investors have kept their money on the sideline

OTHER

• Iron ore futures are continuing to soar in China
• Copper prices are dipping
• Gold is being purchased by Central Banks again
• Crude oil continues its downward march
• Credit contraction in Turkey is the worst its been since 2002
• South Korean stocks are in bear territory
  • Q3 GDP growth disappointed (Actual 0.6% | Expected 0.8%)
• Japan’s manufacturing activity grew this month

CHINA

• The yuan is at multi year lows
  • Lending to small businesses is grinding slower
• The Belt & Road initiative is slowing new development