Global Growth is About to Pick Up Big Time
Fab Five
Here is our Monday series, Fab Five Fundamentals, which looks at bullish observations from the weekend. This time very much focused on the strong and re-accelerating economy.
Best of times
Jefferies shows that despite the dip in the beat rate, intra-earnings EPS revisions have been fairly stellar and that this bodes very well for the future performance of equities.
"The +2% markup to the SPX’s NTM EPS is good enough for top quintile looking back over the past 20Y. This is the third such Q in a row and the fourth positive Q for this earnings revision cycle. Notably, typical cycles over the past 20Y tend to last 8-10 Qs and when revisions are as good as we have seen over the past 5W, forward SPX performance tends to be stellar, +17% on a 12mo basis."
Source: Jefferies
Source: Jefferies
DOW
9 months in a row the DOW is higher. This just feels solid.
Source: Carson
Still that cyclical bid
Despite the software selloff in recent weeks, flows into technology sector funds remain positive. Flows into cyclicals have slowed back down a little but are still positive.
Source: EPFR
US growth picks up
US heavy truck orders are picking up sharply, this is normally an early sign of recovery.
Source: Macrobond
Sentix survey suggest
Sentix surveys suggest global growth is about to pick up big time after three years of stasis.
