Zigging our way through a week of positives we noticed our island getting a bit more crowded by mid-week, only to see the oars and row boats headed the other direction near weeks end. We stand firm on our positive island so here are your Zigs for the week:
Happy Veterans Day: We salute and thank all of the current and former soldiers who make this possible. A special wish to family and friends who are in harm’s way right this moment, we appreciate your services and thank you for everything you do. Our lead off positive, this week, another no brainer!
Capital Spending Reaching 2008 Levels: Think of it as family discretionary spending; As capital spending by public companies rise it can signal confidence in the economy and future needs for hiring. This is a positive and echoes our theme of corporate managers navigating the shifty economic waters very well.
Chinese Inflation Cools: A successful battle on inflation seems to be occurring. The great engine that could, China, appears to have successfully put the brakes on overheating their engines. With such positive growth prospects, the eventual removal of their foot off the economic brake, makes for another positive this week.
Jobless Claims Edge Lower: Once again lost in our Zagging international headlines, US jobless claims headed lower, making for early holiday presents for many as the US. Slowly, but surely, the economy begins to take down some of the unemployed. This is a terrific positive as employment most certainly leads to more confidence.
Italy Steps to the Edge, but Makes an About Face: The reason for many Zaggers hitting their row boats and leaving us to Zig on our island alone mid-week, was spiking debt rates for the Italy’s debt. Italy’s 10 year government bond, crossed 7.5% in yield (value dropped tremendously) as many thought the country may slide into default. As confidence regained their bonds rallied in value, lower rates to near 6.5%, making for a positive as it appears Italy was on the edge, but made a positive turn around. We will be expanding on this situation shortly, so stay tuned.
Have a Great Day and a Super Weekend!