GDP Grew 1.4 Percent in the Second Quarter

Postive News!
Q2 #GDP grew at a revised 1.4%, higher than the 1.1% estimate, lifted by consumer spending & bus. fixed investment. http://bit.ly/2cE5Oyp

Real GDP +1.1%

Real GDP +1.1%

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Housing Starts and the S&P 500

Housing Starts and the S&P 500 index 10 year correlation. https://lnkd.in/eSG7xfM

092016 Housing Starts & sp500

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A closer look at market volatility

There have been rumblings lately pertaining to the market’s daily movement of greater than 1% volatility. 173 trading days into the year the DJIA is showing the signs of investor jitters. But there have been only 7 days with the DJIA closing up or down by more than 2%. Here’s the breakdown.

091916 Scattered Volatility DJIA 1037

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Is lack of income growth the “real political issue” for Americans in this 2016 presidential election? #StagnantWages

Is lack of income growth the “real political issue” for Americans in this 2016 presidential election? When you drill down and take a closer look at household income the past 20 years, it is disturbing. Here’s the data provided by the Census Bureau.

Median HH Incomes

http://bit.ly/2cUJ1ex

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Does where you live affect your income?

How much income is your household earning? From the looks of this chart, where you live seems to matter. Source: Census Bureau – http://bit.ly/2camj2O

State Map AGI 2013

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Employment Growth by Industry – August 2016

A closer look at the month of August’s job growth by industry in the private sector. Education and health care topped the list +39,000 new hires, while construction and manufacturing cut 6,000 and 14,000 employees respectively.
Job Growth by Industry Aug 2016

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Job Growth Falls Short of Estimates

Job growth increased by 151,000 in August, well again of its 91,000 average since the business cycle expansion began Jun 2009. Stock and bond futures have initially reacted positively on the report, on the assumption that the Federal Reserve will postpone rate increases in September.NONFARM PAYROLLS AUGUST 151000

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S&P 500 Peters Out in August

S&PS&P Monthly Price Returns 500 monthly price changes for 2016. January started the year off on a sour note, -5.1%. March rallied the troops with the index gaining 6.6%. August petered out as usual -.1%; in fact, since WWII the 8th month has posted -.2% on average and has earned the penultimate position for worst performing month.

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The Consumers’ Income Statement

Janet Yellen’s words painted an improving picture for the overall economy. She expressed sufficient improvement in the labor market and gradual increases in economic output. Specifically, the area she cited enthusiastically was the “solid growth in household spending.” For those of us that are interested in knowing what’s happening in our world economically speaking – keeping up with all the different words used by monetarists and economists can become confusing. Personal Consumption Expenditures (PCE) is the iConsumer Outlays & Expenditures 082916-2ndicator mostly used by the Federal Reserve. PCE measures overall consumer spending and is broken down by the Bureau of Economic Analysis in two groups: goods and services. On average, the consumers have upped their spending about 3.5 percent a year the past decade. Which group do you suppose consumers increased their spending the most, goods or services? The answer is services. In the United States, two-thirds of economic activity is generated by the consumer. If someone is searching for a worthwhile career or investment, isn’t it logical to focus on the areas offering the best opportunity? Goods purchases have been on a declining scale during this business cycle expansion. In the past 12 months, folks raised their buying of new goods by only 1.3 percent. Spending on services, however, has been a hotspot garnering around 4.4 percent annual increases in consumer spending. Services are here to stay and offer an array of jobs and opportunities ranging from: health care, waste management, recreation and social services, to name a few. In the chart, the columns illustrate the amount of income, expenses and savings consumers are earning, spending and keeping. The blue column shows the amount of income earned; the red columns show the expenses paid, and the green column shows the amount Americans’ are saving annually. Working Americans are socking money away at a rate of 5.7 percent after-tax. That’s a colossal sum of $784 billion dollars, which is more than double the amount saved at the turn of the millennium. Where is all the money going to end up? My guess is that some of the money is going to be reinvested into services.

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GDP Grows at 1.1% in Q2-2016

United States Q2-2016 GDP growth figures came in at 1.1% (below 1.2% earlier est.). For Americans standard of living to increase and stay above the cost of food, shelter and heath care costs, the growth rate needs to step up another 2 percent on a continuum.http://bit.ly/2blffhe

GDP Q2 1.1%

 

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