Time To Cash In Your Chips?

Rarely during a client review meeting these days is there no mention of the stock market's all time highness, along with queries as to how long it can last. At times we'll get inquiries via email from colleagues or clients who in that moment intimate their sense of bewilderment as to the market's current state of affairs.

This Week's Message: The State of the Economy Heading Into the Holiday Season

Heading into a shortened workweek, it seems only fitting to offer up a shortened weekly message. Here goes:

While getting a jump on this week's macro analysis over the weekend, I guessed that the forthcoming reading of the Index of Leading Economic Indicators would jump nicely given the positive look of many of the other 72 data points we track. 

Sure enough:     click any insert to enlarge...

Small Businesses on Taxes and Labor -- AND -- The State of the U.S. Labor Market

Three of the seventy-three inputs to our macro analysis have to do with the results of the monthly NFIB Small Business Survey. We track the headline number, hiring plans and capex (expansion) plans. While we don't score the stated concerns of the employers of 2/3rds of all Americans, we find them to be interesting and instructive. 

Stat of the Day: Housing starts and permits...

Following up on our housing theme from this morning, today's release of new home sales and permits speaks to the sustainability of the single-family housing market. Oh, and by the way, such data does not support the doom and gloom you've been hearing from the media of late:

Charts of the Day: No Housing Bubble Here

We've expressed herein a few times of late (here's one) our view that -- rising/record home prices notwithstanding -- today's housing market does not nearly possess bubble characteristics.

To further support that notion, take a look at the latest quarterly Fed assessment of U.S. consumer credit, courtesy of Bespoke Investment Group. I.e., it takes a lot more (a lot more!!) than the ability to fog a mirror (the mid-2000s litmus test) to qualify for a mortgage these days:    

This Week's Message: The Quintessential

The stock market is a fascinating phenomenon! It is the quintessential independent, and unpredictable, entity. Yet there are those who would have us believe that they have its number; that they have indeed figured out what makes it tick and what its next move is going to be. 

There's Inflation in Them There Surveys! -- AND -- Gold's action made sense to us yesterday...

Once again, the Institute for Supply Management Survey respondents are telling us there is indeed some inflation out there. Thing is, we, as of yet, haven't seen much in the headline indicators; which, by the way, (PPI and CPI) are set to report next week.