Although there has been a lot of noise present in the market from various topics, such as trade war, EDF decisions, Brexit decisions and most recently impeachment to Trump. Wall Street has been on the side-lines for about 5 months now, with some variations, but not much below or above the previous historical highs. Investors are now feeling much more restrained mostly due to the behaviour of the economy, which later translates into business results.
Yesterday it was retail sales that put a brake on the optimism of the previous day, a contraction that comes after consumer confidence has shown some signs of weakening, although still at solid values. The problem is that the US economy or the world economy is far from the robustness of recent years and this is felt in the behaviour of Wall Street, which may even reach new highs by the end of the year, although it would be difficult. Upward variation without cloud hanging over the world trade and the US economy being dissipated.
Photo by Marcin Kempa.
