Today provided us with an array of data points that seemed to contradict the normal investment play book. I wanted to provide a brief example as to why this type of market environment is so difficult to invest in. Below I outline a few of the normal relationships that have gone wild – at least for today:
High-Frequency Economic Data:
We had weekly first time jobless claims and continuing claims continue their trend lower unabated; however, the Goldman Sachs Global Leading Economic Indicator rose for the first time since July (albeit still in negative territory but the path at least for March has shifted).
Stocks vs. Bonds: