Recent Data indicates Soft Patch or Something More?

by Laura Ehrenberg-Chesler on June 2, 2011

in Economic Indicators,Employment,Investment Strategies,politics,Residential Real Estate

Yesterday the ADP and Challenger employment data were disappointing.  In addition, the ISM number was weak, including new orders.  These numbers, coupled with the weak housing data one week ago have investment pundits wondering whether the economy has hit a soft patch, or is presaging a steeper slowdown.

The markets are also trying to digest the problems in Europe, and how the possibility of a Greek debt default, and weakness in some of the other EU countries will affect global growth.

We think the economy has hit a soft patch that will improve later in the year.  If Congress could agree on and enact some real, and meaningful cuts to runaway entitlement costs, the market could actually start another leg of the bull market.  Of course the corollary to that, is that more of the same, equals an economy and markets, that will hit more than a short term soft patch.

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