The Atlanta Fed has reduced its GDPNow forecast for Q1 to .5%, down from 1.2%. The Fed raised the Fed Funds rate in March to .9% as expected, but rates on longer term treasuries have come back down to Nov. levels. Do the bond mavens see something wrong with the economy, or is there a flight to safety motivated by the French election and tension in N. Korea? The 12-month trailing GAAP PE on the S&P 500 fell to 23.7 this month (still overvalued), on the back of the 3% correction we experienced. 76% of S&P companies are beating earnings estimates with 8% reporting, and earnings are projected to rise by 9% vs. a year ago, which should limit this correction. The S&P continues to run in the bull market uptrend channel it has been in the last few years.
The bull market continues, IMO.