My Investing Muse

Is the S&P500 a good reflection of the US economy? As more Americans struggle with the cost of living, the S&P500 is currently in decline. Is this a reflection of the US economy or is this a good gauge of the global economy? The latest Q3/2023 GDP figure released has revealed a strong robust economy. US GDP soared to a 4.9% in Q3/2023. This is the highest since the end of 2021 and a big jump from 2.1% in Q2/2023. From various sources, strong consumer spending and government spending drove the growth.  Does this mean that the recession is over? Is this sustainable in lieu of the Federal, commercial, and private debts? Revenue sources of S&P500 companies Extract from the  article  from Globalxetfs: Companies that generate a substantial part of their revenue from outside of the U.S. could experience additional earnings compression, albeit with a lag.  Roughly 40% of S&P 500 revenues are generated outside of the U.S., and about 58% of Information Technolo...

Public Holidays There are no public holidays for China, Hong Kong, the USA & Singapore in the coming week. Economic Calendar (30Oct2023) Notable Highlights Fed ’ s interest rate decision should be a most watched event. An increase in the interest rate can be bearish though, the survey reckons that the Fed is expected to keep the interest rate the same. The surge in GDP for Q3 could be one of the reasons the Fed would consider increasing the rate as the economy gets hot. Payroll & Jobs . JOLTs job opening, average hourly earnings, Nonfarm payroll, ADP nonfarm employment change will form part of the payroll data. If these are favourable, this can be the reason why the Fed may rise the coming interest rate. CB consumer confidence (Oct) is a good indicator of the consumption in USA. PMI . PMI for both US and China will be released this week. This will cast the outlook for the manufacturing sector. For USA, there will be a few of them that include ISM Manufacturing PMI, ISM non-M...