3rd Quarter Update: Storm Clouds Gathering

Douglas Cote

Douglas Coté, CFA

Senior Portfolio Manager, Head of Global Perspectives

The gathering storm clouds that first began forming across Europe, and then China are now developing over the U.S. In Europe, it seems imminent that the third quarter will signal a recession; China has its hands full with the U.S. supply chain; and the U.S. suffered a substantial negative surprise in its very important manufacturing sector. Meanwhile, the consumer sector continues unabated and corporate earnings are still reaching record highs. Right now though, markets are focused on the impending storm.

  • Markets are fixated on the gathering storm clouds over Europe, China and now the U.S.
  • Meanwhile, consumer growth advancing unabated and corporate earnings still setting record highs
  • A close look at “Big 3” (Europe, China and the U.S.) manufacturing can provide a vivid picture of their respective outlooks for the global economy and future corporate earnings
  • Despite manufacturing woes, the U.S. consumer’s exorbitant strength is stepping into the void
  • While investors see constant negative headlines, the market keeps challenging all-time record highs

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