What will frame investor decision-making in August is going to be totally Fed-driven. We've gotten the anecdotal comments from Mr. Greenspan that we can achieve a slower growth landing but we now have to see that anecdotal evidence turn into fact.
We seem to go from worries about the economy slowing down to appreciating that the economy remains strong and can bounce back from slower fourth-quarter GDP growth.
We're supported by a rebounding economy after a weaker fourth quarter, and recently lower oil prices. But that's countered by concerns about slower earnings growth and higher inflation.
(The GDP) doesn't justify the slower earnings picture later in the year. There's a little bit of saving grace in there because we're seeing a strong economy still with no dramatic inflationary prospects.
(The GDP) doesn't justify the slower earnings picture later in the year, ... There's a little bit of saving grace in there because we're seeing a strong economy still with no dramatic inflationary prospects.