A August Overview

This has certainly been the year of geopolitical headlines.  It’s hard to flip on the TV or radio without being pummeled by stories of trade wars and political impropriates.  That said, the economy has continued to impress, and earnings have followed suit.  There are a couple bright spots we would like to point out:  

GDP Growth – US GDP Growth for the 2nd quarter came in at a robust 4.1%.  This is the fastest growth we have seen in a number of years. 

Earnings Growth – Average earnings growth for companies in the S&P 500 came in around 21%, year-over-year.  This is an astounding number.  Although, we would temper it just a little with the fact that the economy went through a 2nd quarter lull in 2017.  

Consumer Spending – Americans like their “things” and the continued strength of the economy has given our consumers more discretionary dollars to spend.  They are doing their part and companies like Nike and William Sonoma are showing it in their earnings.  

Unemployment – Unemployment continues to stay VERY low, by historical standards.  When there’s this much demand for labor, it often translates to wage pressures.  This can lead to inflation, so it bares watching.  

 

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