The ISM Manufacturing Index is derived from a survey of purchasing managers and their outlook on overall conditions by looking at factors such as orders for durable goods, industrial production, and hiring. It gives a general direction rather than the specific strength of the factory sector and manufacturing activity in the U.S. A reading above 50 is an indicator that …
Does this mean that our economy goes into recession?
I have included, at the end of this note, a few paragraphs of Liz Ann Sonders, Chief Investment Officer of Charles Schwab. Her advice is sound in times like these. From our side, the selloffs are overdone. This does not mean, however, that they will bounce back right away. In previous Market Updates, we have mentioned that there will be …
Are Businesses the New Banks?
More than half of all cash on the books at corporations is invested in investment grade corporate bonds. The record high comes from the decreased investments in US Treasurys, commercial paper, and CDs. Money market funds are becoming less attractive due to new SEC rules and deposits are tougher on banks due to the banking rules of the Federal Reserve. …