Quote of the Day: Again, Be Careful What You Ask For!

We've stated a number of times herein that the somehow popular in some circles notion that the U.S. is "winning" when the world's second largest economy appears to be "losing" is, to put it mildly, grossly mistaken.

Bloomberg Markets stressed that point this morning:

"There appears to be an unusually tight correlation between China's PPI and the S&P 500's performance in recent years. When China's factory prices started to rise from a deep deflationary spiral in early 2016, it also marked the trough of the S&P 500 that year. In fact, the correlation between year-on-year change of the S&P and China's annual PPI over the past three years amounted to a rather high reading of 0.77."

"While the U.S. economy is benefiting from a robust labor market and resilient business confidence, it's hard to argue that it can be completely isolated from the slowdown of the world's second largest economy."