Major economic & market developments for the week ended 12/2/16
• Big jump in consumer confidence, highest in 8 years –up 17 points since election
• Unemployment rate down, but all is not good… labor force participation rate still weak
• Home prices, and equity, doing well
• Rotation to small-cap value has been pronounced
• S&P 500 had 2 days of institutional selling last week, but is still in an uptrend
• Sector rotation: Transports, Cap Equipment, Finance and Materials are strong
• Big move up in interest rates over the last 30 days
• Dramatic capital flows over the last month: out of bonds, into equities
• 20 year Treasury oversold, short-term
• Featured company: Industrial focused on the transportation sector with 52% upside to our 24 month price target
VIEW THE FULL REPORT
