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Ukraine pain……Market
today took the situation in Ukraine a little more seriously following John Kerry’s
more forceful comments and talk of increased sanctions placed on Russia by G7.
So far, the market has taken the Ukraine situation pretty much in stride.
What’s the point?……..Geopolitical
events have an impact on investor confidence and sentiment. Given the very mild
impact reflected in today’s 0.8% decline, investors still generally believe the
situation in Ukraine will not result in a more serious conflagration. We agree
with this view. Link: http://www.bloomberg.com/news/2014-04-25/g-7-may-act-quickly-against-russia-as-accord-falters.html
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Consumer expectations
Improve….U.S. consumer sentiment data measured by the
Thomson/Reuters-U.Michigan survey came in better than expected in March. The
current conditions index rose to its highest level so far in this recovery, a
very good sign for the economy. We have seen a pattern over the past several
years in which these readings start strong then fade as the year progresses.
What’s the point?.......We think if
employment growth remains good, the more positive sentiment should hold up.
This should be positive for consumer discretionary stocks. Link: http://money.msn.com/business-news/article.aspx?feed=OBR&date=20140425&id=17557688
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U.S.
manufacturers more competitive……In another encouraging sign for the U.S.
economy, a new report shows U.S. manufacturers are continuing to become more
competitive. This trend has been underway for some time but the BCG study of further
confirmation is positive.
What’s the point?........Manufacturing
is increasingly important for the long-term health of the U.S. economy
especially when consumer spending may be restrained on a secular basis.
Increased competitiveness of the U.S. manufacturing base means the companies
will benefit from growth of both U.S. and foreign economies. This should
translate into stronger earnings for these companies, and adds another buttress
for U.S. economy and financial markets. Link: http://money.msn.com/business-news/article.aspx?feed=AP&date=20140425&id=17556412
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