The US economy cooled in the third quarter, and by a hefty degree, according to this morning’s initial estimate of GDP for the July-through-September period. In line with market expectations, output rose at a soft 1.5% annual rate, well below Q2’s strong 3.9% rise. A key factor in the deceleration: a sluggish rise in inventories, which slashed 1.44 percentage points off of the headline GDP growth rate, marking the biggest inventory-related cut since Q4: 2012.
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Maybe. Depending on the selection of indexes, fund products, and time periods, you can find almost anything you want. Data mining issues aside, the notion of what’s often called the “sweet spot” in the capitalization spectrum persists, albeit in fits and starts. A popular explanation is that the middle slice of the capitalization spectrum merges the best attributes of small caps and large caps while minimizing the drawbacks. The implication: you should carve out a dedicated mid-cap allocation. Perhaps, but like every other risk premium the mid-cap variety waxes and wanes.
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● Fed leaves rate unchange, dhints at December hike | Reuters
● US trade gap drops to 7-month low in September | Bloomberg
● Inventories expected to weigh on today’s GDP report | Reuters
● US trucking growth has been weak this fall, according to execs | MNI
● German jobless rate ticks lower in September | Reuters
● Japan’s industrial output delivers upside surprise for Sep | Bloomberg