By Bill Hornbarger, Chief Investment Officer
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Three Things to Watch
- Global central banks will be front and center this week. The U.S. Federal Reserve has a two-day meeting and is widely expected to cut rates another 25 basis points when the announcement is made Wednesday afternoon. On Thursday, both the Bank of Japan and the Bank of England will also make announcements concerning monetary policy.
- Prior to the Fed meeting, the markets will get readings on retail sales and housing starts, and after the meeting, revisions to third-quarter GDP and personal income and spending, which includes the Fed’s favored inflation gauge: core personal consumption expenditures.
- And finally on Thursday, the index of leading economic indicators is expected to be negative for the 31st time in the last 32 months.
Three Things to Know
- The number of pages in the Federal Registry (used to track new government regulations) was over 90,000 at the beginning of 2023, down from its peak of 97,000 at the beginning of 2016, but up from 61,703 pages in 2017. (Source: Haver)
- S. stocks now make up 65% of the global equity market, their highest weighting in history. This is more than 11 times bigger than the second-largest country by market cap (Japan at 5.5%). (Source: Charlie Bilello)
- S. stocks are now trading at over 22 times forward earnings versus 14 times for international stocks, the widest valuation gap in history. (Source: Charlie Bilello)
The above information reflects the current opinion of the author. It is based upon sources and data believed to be accurate and reliable. Opinions and forward-looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security mentioned.