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Market Notes for the 3rd Quarter 2014

Short-term Volatility in an Improving US and Emerging Market Economy.

The economy is growing, inflation is under control around the world.

Forecasts for third-quarter GDP are strong at 3.5%, and estimates for earnings growth in the same period are around 8.9% in the US.

The Emerging Markets are growing GDP at 2 – 3 times the US GDP rates.

There is no evidence of irrational exuberance today.

Corporate and economic reports show strength across many sectors.

Data is good: The biggest problem with bubble talk is that it ignores the facts. For instance, the unemployment rate is at 6.1% — the lowest since September 2008.

Also note that second-quarter GDP expanded at a brisk 4.6% pace.

Skepticism and negative headlines drive investors’ decisions which is not good for them.

Valuations are fair not only in US but Very cheap in the Emerging Market Economies.

Fed tightening isn’t a bad thing, stocks often go up as the Fed raises interest rates.

Bumps in the road are normal as the economies continue to expand.

Every quarter is not always up nor is every year. Expect it as an investor!


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