MARKETS GOING FOWARD $$$$$$$ Don Lato, President, Padlock Investment Management
FOCUS: North American Equities
Market outlook:
After one of the most volatile weeks in market history, Padlock continues to be constructive on the long term outlook for equities. Signs of capitulation were evident mid-week after the long awaited market correction finally happened. Classic signs of the end of a bull market are not yet apparent. The yield curve is still positive, economic growth continues as evidenced by ISM Manufacturing PMIs in the U.S. having been positive for 71 of the last 72 months, employment trends are still positive and housing starts are picking up in the U.S. These are all signs that a recession is not imminent and suggest that we have witnessed a market correction and not the beginning of a new bear market.