● US Job Openings Rise to the Highest Level in 14 Years | WSJ
● February US Small Business Optimism Ticks Higher | 24/7 Wall St
● US wholesale inventories rise; labor market tightening | Reuters
● China’s Industrial Output, Retail Sales Growth Slows | RTT
● UK industrial production falls 0.2% in December | Guardian
● Draghi Says ECB Action Can and Will Return Inflation to Goal | Bloomberg

Economic growth in the US remains on a steady path, according to a markets-based estimate of the macro trend. The Macro-Markets Risk Index (MMRI) closed at +6.8% yesterday (Mar. 9). The benchmark’s readings so far this year have remained in a tight band of roughly +5% to +10% — a signal for anticipating ongoing economic growth. A decline below 0% in MMRI would indicate that recession risk is elevated; readings above 0% imply that the economy will expand in the near-term future.
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● Fed’s labor-markets conditions index slows in February | MarketWatch
● US Employment Trends Index Increased in February | Conference Board
● OECD: Euro zone growth gaining pace, others stable | Reuters
● French Industrial Output Rises Unexpectedly In January | RTT
● China February consumer inflation rebounds | Reuters
● EU, Greece to start technical loan talks Wednesday | Reuters

Tactical asset allocation (TAA) is the solution and the problem. The solution because dynamically managing the asset mix offers the potential for superior risk control and perhaps even higher returns relative to a passive strategy. But TAA is also a problem in the sense that no one’s really sure which set of rules for managing a portfolio’s asset allocation in real time will shine in the future. That alone isn’t a reason to shun TAA, although it’s a reminder that the hazards may be higher in this niche compared with a simple rebalancing regimen such as moving allocations back to target weights every Dec. 31, for instance.
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● NABE Survey: Business Economists Support US Rate Hike This Year | NY Times
● German exports post biggest drop in five months in January | Reuters
● China Trade Surplus At Record High; Exports Surge More Than Expected | RTT
● U.S. oil production still surging | Econobrowser
● Bank of France Cuts Q1 French GDP Fcast to +0.3% Vs +0.4% | MNI

● What’s Your Future Worth?: Using Present Value to Make Better Decisions
By Peter Neuwirth
Excerpt via publisher (Berrett-Koehler)
Almost all of us imagine the future impact of the choices we make, but what distinguishes the actuarial perspective from the way people normally make decisions is that by using Present Value we can think about our choices in a systematic way that takes into account some aspects of the future that we rarely consider. In particular, when we use Present Value we try to imagine not just what we think the future impact of our choices will be, but rather consider all the possible futures each choice might lead to. And even more important than considering all the future consequences that a given choice might lead to, we consider when those future consequences might show themselves.
In summary, using the actuarial perspective means thinking about the future in a systematic way and using the idea of Present Value—the value today of something that might happen in the future—to make better choices.
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Private payrolls increased substantially more than expected in February, delivering an encouraging dose of optimism in the wake of wobbly data in recent weeks from other corners of the economy. US companies added 288,000 jobs last month, according to this morning’s report from the Labor Department — far above the consensus forecast for 230,000 via Briefing.com. The news is all the sweeter since it contrasts with the lesser rate of growth that’s implied via this week’s ADP Employment Report for February.
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One of the more intriguing observations in Berkshire Hathaway’s new letter to shareholders is Warren Buffett’s reference to what I like to call economic gravity, aka the law of large numbers. There are several ways to keep it at bay (maybe), but in the end it wins no matter what you do. Buffett and company, of course, have an extraordinary history of excelling where so many others have stumbled in this regard. But an unusually long run of success is taking its toll. As Buffett himself recognizes, gravity’s pull is increasing on Berkshire’s prospects. The observation inspires some brief ruminating on how to think about economic gravity generally in the realm of designing and managing investment portfolios.
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● US factory orders fall for sixth straight month | Reuters
● US factory orders down, but business investment rises | NY Times
● US jobless claims hit highest level since May | MarketWatch
● ECB raises GDP forecasts, sees zero inflation in 2015 | Reuters
● German Industry Output Rises for Fifth Month as Growth Firms | Bloomberg

New filings for unemployment benefits unexpectedly rose last week, reaching the highest level since last May. Is this an early warning sign of trouble for the labor market and, by extension, the economy? No, not yet. It could be nothing more than weather-related turbulence courtesy of a harsh winter. But if this leading indicator continues to rise in the weeks ahead, we’ll have a signal that’s not so easily dismissed. For now, the recent changes are still within the band of “normal” fluctuations that are linked with a healthy degree of forward macro momentum. The margin of comfort, however, is wearing thin and so the next several reports could prove to be decisive, for good or ill.
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