Enterprise Bank & Trust
The Billion Dollar Scheme

A Time To Be Thankful

November 22, 2017

Michael J. Kowalkowski, Chief Investment Officer at Enterprise Bank & Trust

Given that tomorrow is Thanksgiving, we thought it would be a good idea to reflect on some of the things about the global economy and capital markets for which we should be thankful. It is an incomplete list and far less important than the things for which we all should be truly thankful. Please humor us, here we go:

  • Unemployment in this country stands at 4.1% and 1.1 million jobs have been created so far this year.
  • Inflation is low and under control. CPI stands at 2.0% and the Fed’s preferred gauge of inflation, the Personal Consumption Expenditure Deflator, is at 1.6%.
  • Wages are up 2.4% over the past twelve months and Personal Income is up 2.2%, year to date. That is not robust, but is exceeding inflation.
  • Long-term interest rates remain low. This is positive and negative. Positive for businesses that want to raise capital, negative for bond investors.
  • Equity returns have been stellar this year. The S&P 500 is up 15.33% through the end of last week. International stocks are up 21.52% and emerging markets are up 33.38%.
  • Growth around the world is accelerating. Europe has gone from 1.8% growth in GDP last year to 2.5% currently. Japan is growing at 2%, up from 1%. China is probably growing at around 10% after likely bottoming at 2% last December. Even the US is accelerating. We have had two straight quarters of 3% growth after registering only 1% last year.

Most of all, we here at Enterprise are thankful for you, our family, friends, clients and colleagues. Happy Thanksgiving!

   

DISCLOSURES: This piece discusses general market activity, industry or sector trends, or other broad-based economic, market, or political conditions and should not be construed as research or investment advice. The opinions expressed are those of the author and do not necessarily represent the opinions of Enterprise Bank & Trust. Past performance is no guarantee of future performance. No diversification strategy can guarantee against loss.


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