We Are NOT Living In A Material World

In a post-crisis world awash with monetary stimulus, the performance of the actual global economy has been an afterthought. In fact, signs of a weakening economy have proven beneficial to stocks, because it raises investor hopes for additional stimulus. But at some point, the stock market will have to go out on its own without the crutch of monetary liquidity injections, and will instead, have to rely on the support of actual economic fundamentals. In fact, such a baton is currently in the process of being passed in the United States, as the Federal Reserve remains intent on raising interest rates. With this in mind, it is worthwhile to explore how the global economic outlook is really shaping up. And if the materials sector is any meaningful guide, the outlook may not be so good.

Please click on the link to read more of my article on Seeking Alpha.

Published by Eric Parnell

Registered Investment Advisor

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: