I couldn't agree more with Bloomberg Market's Anchalee Worrachate this morning. In fact, it basically sums up how we approach the investment process (i.e., data dependent):
"Perhaps investors should be data dependent, just like the Fed, instead of relying too much on growth forecasts or reading too much into stock signals. After all, economists have had a bad record of predicting recessions, as this report highlighted, and markets can be too pessimistic.
Equity pullbacks are a poor indicator, too. Stock corrections like this one have occurred six other times since the bull market began in 2009. As my colleague Lu Wang noted, they all sparked growth scares, but none of them a recession. All this means there's still scope for stocks to recover and yields to pick up in coming weeks and months."