US equities have been trending lower so far in March, and no sector has been immune to the selling. But the relative strength in healthcare stocks continues to stand out. Energy companies, meanwhile, are still the weakest corner of the market among the major equity sectors, based on a roundup of trailing 252-day (1 year) periods through Mar. 11 via our usual set of ETF proxies.
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● US mortgage application slip in early Mar after Feb losses | HousingWire
● Euro hits fresh 12-year low against dollar | MarketWatch
● S. Korea joins global easing with surprise rate cut as growth falters | Reuters
● Germany Feb Consumer Prices Rebound As Expected | RTT
● France Consumer Prices Fall For Second Straight Month | RTT
● Technocrats due in Athens on Thursday after start of Brussels talks | Ekathimerini

US retail sales are expected to rise 0.5% in tomorrow’s February report vs. the previous month, according to The Capital Spectator’s median point forecast for several econometric estimates. The median prediction reflects a substantial rebound vs. the previous month’s 0.8% decline.
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The possibility that the Federal Reserve may start raising interest rates in the near future continues to resonate among investors and in the news media. But the view remains nuanced from the vantage of yields in the Treasury market. Although market rates have bounced higher off the lows in late-January/early February, yields have backed off their recent highs, suggesting that there’s still uncertainty about the timing for a change in Fed policy.
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● 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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