Wednesday, March 16, 2016

Federal spending slowing down. Stocks maybe stall out here.

Spending is still up year-over-year by $35 billion, which is good, however, the rate of spending growth is slowing so we could see the stock market stall out here.

I don't think the spending slowdown is fatal by any means, it's just a "downshifting."

2 comments:

Matt Franko said...

Seems like equities are having a hard time here at around 2,000 on the SPs... oil stuck at the $35 level.... we need to start seeing some positive earnings guidance from the non-oil related firms for Q1 then maybe we can start to drift higher on the index....

If they raise today, we might get a sell off on the equities....

mike norman said...

If they raise and we get a selloff that is a gift to buy. As it is already, we are something like $12 billion higher in interest payments so far this fiscal year compared to last year. A raise is a fiscal gift.