Some articles today worth considering:
- Deleveraging will take over as everyone runs out of ammunition
- Lacy Hunt on The roadblock to recovery
- ECRI recession call: growth index contraction eases (good charts)
Pimco’s Mohamed El- Erian on this morning’s stronger than forecast employment report. Risk on for how long? Here is the video link.
Meanwhile, there is further evidence this morning that Eurozone growth recessed in the fourth quarter and retail sales dropped 0.4 per cent during January, foiling expectations for an increase.
In addition, on top of another month of negative GDP growth in Canada for November, this morning we learned that Canada produced just 2300 jobs last month and the unemployment rate moved up to 7.6%. Not to worry, only 70% of Canada’s exports go to the US today (down from 85% in 2002, see chart below) I am sure Canada will fare just fine if the US economy continues to flat line for a few years here. (yes, sorry, a little sarcasm…)
Of course, none of this is bothering stock markets today…today they dance, drink and be merry. Those who are sober will have to wait for another day for facts to be faced in the global economy it seems. On the other hand if all is well in the world, why would we need QE3, oops what do you mean you traders already priced it in?