Clifford Bennett
Independent Analyst
That was good economic data on the day.
The market reacted only mildly within range.
US Retail Sales built on previous positives, establishing at least a heart beat for the consumer.
US Industrial Production bounced out of contraction mode, but is nonetheless flat over the past 3 months now. Expect moderation next month. Out of contraction is good, but this is not a strong data run.
This may be the best news we have had in a very long time.
Pfizer, following the lead of others, has developed a pill that can be taken soon after contracting the virus, that gives 89% protection against serious illness and death. At last, a strategy that is effective and timely. the wearing off of vaccines, Pfizer at 22% per month, has been well documented.
An approach which does not require constant six month booster injections with unknown cumulative long term side effects, is a welcome development. Vaccines were never going to get the economy back to normal, only temporarily before the inevitable fresh new surge. Being mindful, and taking a pill when contracting the virus is a far superior strategy.
Economic data around the world remains tilted to the downside. The USA did develop a heart beat however. Those were good retail sales numbers, and it does have something to do with their being stock on the shelves now. The industrial data was no so impressive, barely matching the previous month decline. Still, a positive.
View on the US economy remains entrenched below trend growth with rampant inflation and rate hikes.
View on markets remains that no matter how good the data would be, it is more than already priced in through the exuberance and easy money situation.
Just a quick note this morning, as I move gratefully toward my 12.00 noon ausbiz show. Link below to register, to be able to watch on demand at a later date. If you read my reports though, there is probably not a lot new in the show.
Hope everyone has a great day,
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