The modest rise in the ISM Manufacturing Index in today’s September update surprised most economists, based on consensus forecasts that anticipated a decline. But the advance to 56.2 last month–the fourth consecutive gain for this benchmark–matched yesterday’s average econometric projection via The Capital Spectator. More importantly, this early look at September’s macro profile suggests that economic growth remains the prevailing wind for evaluating the business cycle. Assuming, of course, the fiscal follies in Washington don’t roll on for too long and bite too deeply.
Daily Archives: October 1, 2013
Major Asset Classes | September 2013 | Performance Review
The global markets rebounded sharply in September, with most of the major asset classes posting handsome gains. The main exception: broadly defined commodities, which retreated nearly 3%. Otherwise, there was a bull-market party across the board at the finale for the third quarter, led by a potent 8.6% rise last month in foreign real estate/REITs. In fact, foreign assets in unhedged US dollar terms generally fared quite well in September, including a strong revival in emerging markets equities, which advanced 6.5%–the best month for this slice of global equities in more than a year. Unsurprisingly, the Global Market Index—an unmanaged, market-weighted benchmark of all the major asset classes—earned a handsome gain in September, rising 3.9%. That’s the best monthly increase for GMI since January 2012.