November 18, 2013
Weekly Market Outlook
By Keith Schneider
As the US debt clock keeps ticking away at an accelerated pace and with economic growth so tepid that our incoming Fed chief feels it’s necessary to keep the spigots on full blast, Americans reached into their pockets to help Filipino’s displaced by the typhoon and in desperate need of food and shelter. For those that tune into The Colbert Show, he raised more money for those needy Filipinos than the entire neighboring nation of China. You might say that Americans went deeper into debt to the Chinese to help those in need, so as divisive as things are here, the US moral compass can still find true north while its financial compass needs a re-calibration. In fact, the poorest Americans give more to charity as a percentage of their income than the upper income groups by a wide margin.
The US equity markets registered yet another gain this week making six consecutive weekly gains, hitting record highs. It loves climbing the wall of worry of a tepid recovery, a healthcare system in disarray along with an accommodative Fed.
Meanwhile, the Chinese stock market caught fire on Friday after the communist party announced unprecedented reforms such as allowing families to have more than one child, abolishing forced labor camps, and a host of economic reforms to transition to more of a free market economy. This major shift came out of necessity as China’s growth has slowed significantly. Assuming the reforms take hold, the demographics of China could look a whole lot better in the next few decades and reignite growth. The correlation between an open society, free markets and financial growth are unmistakable.
This week's video will cover the key US indexes, market internals and the Chinese stock market as well.
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