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United States: Economists continue to downgrade their GDP growth forecasts. The latest consensus estimate suggests that during this quarter, the US economy will shrink by nearly a third.
Europe: European equities’ underperformance vs. the US continues to widen
Commodities: Gold continues to rally.
Gold’s correlation to the stock market has been unusually high this year.
Equities: US share valuations remain a concern. Here is the 12-month forward price/earnings ratio. The bull argument is that the market should look beyond one year to a sharp recovery in earnings. Perhaps.
Rates: The Fed has been financing most of the increase in US federal government debt issuance.
Food for Thought: Amazon vs. the rest of US e-commerce:
Edited by Daniel Moskovits
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