Content provided by Marc Pfeffer, CLS Senior Portfolio Manager
No matter what side of the fence you are on with your investments, right now, you have good reason to like your position. As expected, the release on first quarter GDP was dismal, however, that is now old news and being attributed mostly to weather. Outside of housing, the data released has pointed to a rebound and the employment picture appears to be improving as evidenced by the ADP numbers. Additionally, the Federal Open Market Committee continues to play it safe, giving no surprises in its just released policy statement.
On the earnings front, so far approximately two-thirds of companies have had positive earnings surprises, including the highly watched Apple. Growth, however, has been sluggish with earnings up a paltry 2% year-over-year, and under 50% of companies have beaten expectations on the top-line.
So as I started this, there has been a little something for everyone. Interest rates have remained low and stocks haven’t strayed too far from where they started the year.