Scott Minerd, Global CIO of Guggenheim Investments, says we should be looking past the recent weather-related disappointments in the econ data:
The good news is that this is likely only transient noise, and that rising temperatures in March and April should revive everything from auto sales to factory activity, helping the U.S. economy return to its improving trend. Pent-up consumer demand should re-accelerate growth in the spring after this short, sharp pain, setting the United States on course for solid growth in 2014 of 3.5 percent or more.
Given underlying economic strength, the recent upside breakout of the New York Stock Exchange’s Advance/Decline Line adds to expectations that U.S. equity prices will continue rising over the next three to six months and that U.S. bond spreads should tighten further.
Markets seem to agree, we’re on the verge of punching through to the upside as participation internally improves and the grind higher sucks in more and more stocks. Asian equities had an amazing night last night and this is supportive.
Nothing Burns Like the Cold
Guggenheim Investments – February 21st, 2014