Search

Something Doesn't Add up and It Is Concerning

Today, we have everything from mixed signals to numbers that just don't make sense to an economy that needs to be medicated - we just don't know for what!


Here is a list:

In December, we had the stock market having one of its's worst Decembers since the Great Depression.


In January, we experience a rebound as if the December swoon didn't even happen. The best January since 1987. 1987, remember, saw the second greatest stock market crash on record.  


In December, everyone was talking about a recession. Today, there is nothing that seems wrong with the economy at least according to the politicians and talking heads on CNBC.  


In January, the Federal Reserve Board is now hesitating on raising rates as if there were something to be concerned with. If there are no concerns, then the Fed should raise rates from their abnormal lows. That would be the healthy thing to do.


In December, home sales fell a dramatic 6.4% from last month and -10% from last December. Yet, interest rates had been falling and the jobs market (read fake news) is stronger then ever.  


In January, the economy was reported to have added 300,000 plus jobs. If the job market is so strong, why is the fed hesitant and why are home prices careening from the sky?


Things are far from normal and so many things are not adding up. This leads me to believe that 2019 is far from a year of safety and growth with the stock market. Don't think we are out of the woods just because the sirens are not sounding.