Tomorrow’s report on industrial production for May is projected to post a 0.2% gain, based on The Capital Spectator’s average econometric forecast (seasonally adjusted). The expected increase is modest, although it represents a substantial rebound vs. April’s 0.5% decline. Meanwhile, the Capital Spectator’s average projection for May is at the upper range of expectations relative to three consensus forecasts based on surveys of economists.
Daily Archives: June 13, 2013
Two Economic Updates, Two More Reasons For Optimism
A pair of economic reports out today offer another dose of data for thinking that modest growth will continue to dominate the macro outlook for the foreseeable future. Retail sales rebounded handsomely last month after a weak gain in April. Meanwhile, initial jobless claims dropped by a robust 12,000 last week to a seasonally adjusted 334,000, which is close to a five-year low. Business cycle risk, in short, still looks contained.
Frequency Risk
Financial planner Carl Richards advises that “what you don’t know about your portfolio may help you.” He laments that watching the market has become a “spectator sport” and that obsessing over the daily or even minute-by-minute fluctuations isn’t all that useful for most investors; in fact, there’s a good case for arguing that this behavior probably reduces performance. “Knowing doesn’t help,” he writes.