O.K. We said we would look at the economic data as it is released and reassess our outlook if necessary.
Yesterday Intel beat even the most bullish estimates on the Street. Oil inventories had a drawdown rather than a surplus. And, to top it off, retail sales came in strong at +1.6%, with auto sales particularly strong.
This positive economic data has us breathing a little bit easier about our positive outlook on the equity markets, at least in the near term.
Housing and unemployment remain a drag. We are unconvinced that we need these to improve meaningfully in the short term, in order for the economy to continue on its upward trajectory. But, it sure would help the domestic economy if they did.
