9/25/2017 0 Comments
IHS Markit analyst, Chris Williamson, takes an optimistic view of the economy, calling it 'resilient' during a month of hurricane disruptions. He believes the economy is growing at a rate just over 2% in 3Q. Although 2% growth is probably enough to be supportive of equity markets, I am more cautious given the recent and significant downgrade of growth estimates from the 3% area to the 2%. If the slowing growth is solely due to hurricane effects, then growth should bounce back relatively quickly toward the previous 3%. If there are other reasons for the slowdown, the Fed tightening for example, then the slowing of growth should be viewed with potential for further deterioration toward the 1% area which would be negative to the equity market in general. Read the full IHS Markit research here.
Michael Grove, CFA