The S&P 500 rose 2.97% percent February following a 7.87% gain in January setting the start of 2019 its best start to a year since 1991.
The markets plummeted in December mainly due fears of slowing economic growth, worries about rising interest rates and global trade issues. What has changed since December?
For starters, corporate earnings for the fourth quarter grew by 13.08% according to FactSet data which shows the U.S. economy is doing relatively well.
Fourth quarter GDP growth numbers are in – the U.S. grew 2.9% in 2018 and fourth quarter growth was 2.6%.
Europe is slowing though. UK Q4 GDP growth was 0.2%, Eurozone Q4 GDP growth was 0.2% and Germany grew just 0% but avoided a recession. Italy entered a recession.
The Federal Reserve said it would be “patient” in raising rates and bond yields seem to signal slowing interest rate rises or possibly even interest rates heading downwards.
Trade worries remain but China and the U.S. appear to be nearing a trade deal
Due to a medical emergency during February we didn’t write much during the month, here are our posts from the month
GDP Growth
U.S. Q4 2018 GDP estimated at 2.6%; 2018 GDP at 2.9%
Germany Q4 2018 GDP was 0%, narrowly avoids technical recession
Economy
Is Household Debt in the U.S. really a bigger problem than before the financial crisis?
Here are Household Saving rates across the European Union
Government bond yields have been falling globally
The Baltic Dry Index is down 48% over the past month
Have banks in the U.S. started lending more money recently?
Trade