The S&P500 is off a total of 3.2% so far this week–and thus far this morning futures are off about 2/3 %. I think stocks are coming around to the conclusion that the economy will weaken substantially from here–interest rates of course have been signaling this for some time now. The common share selloff has been nice and orderly–whether markets are up or down, just like interest rate movements, as long as price movements remain orderly I am calm.
We have only a few economic numbers today. We have ‘revisions’ to unit labor costs and productivity at 7:30 am (central) and late in the day we have consumer credit growth announced. These typically wouldn’t move markets, but they will be scrutinized closely this time around–unit labor costs and productivity for inflation contributions and consumer credit for growth beyond expectations. Consumers are leaning heavily on credit which may come back to haunt them later depending on general economic conditions.
So I will likely continuing on the side lines in terms of new buys–just no cash available yet. I am fine just watching while my money works for me–every month I am rewarded with dividends and interest and December is a big month.