27 July 2018

Stocks and Precious Metals Charts - Stocks Lack GDP Enthusiasm - Non-Farm Payrolls and FOMC Next Week

"A nation that destroys its soils destroys itself. Forests are the lungs of our land, purifying the air and giving fresh strength to our people. "

Franklin D. Roosevelt

“Can we actually suppose that we are wasting, polluting, and making ugly this beautiful land for the sake of patriotism and the love of God?   Perhaps some of us would like to think so, but in fact this destruction is taking place because we have allowed ourselves to believe, and to live, a mated pair of economic lies: that nothing has a value that is not assigned to it by the market; and that the economic life of our communities can safely be handed over to the great corporations."

Wendell Berry

GDP came in slightly below expectations but still much higher than we have seen recently.

Inflation remains around 2% at the core and 3% overall.

I suspect that this GDP number is not sustainable, and that continued wage stagnation will continue to provide a damper on aggregate demand, despite the sugar high being provided by tax cuts, mostly to corporations and the wealthiest few.

Stocks shook off the rosy GDP number, albeit in line and short of inflated whisper numbers, preferring to act off real world news coming out in the earnings reports.

Gold and silver marked time within this long trading range.

The dollar was slightly lower.

There will be an FOMC meeting next week.

We will also be seeing the Non-Farm Payrolls Report for July at the end of the week. I have included an economic calendar for next week below.

Need little, want less, love more. For those who abide in love abide in God, and God in them.

Have a pleasant weekend.