Market Update - July 31, 2014
The markets are facing some serious headwinds today as the Chicago PMI number came in lower than the consensus estimate, and Argentina has again defaulted on some of its debt.
The Chicago PMI number is one of many indicators and can occasionally be a volatile report that does not always reflect national sentiment. The U.S. Services PMI which is produced by Markit and is a much broader measure, releases July results on August 5th and is forecasting a more positive outlook . Coupled with the positive GDP number from yesterday, it may not be as “doom & gloom” as the naysayers predict on television.
Global markets showed some weakness mostly due to Argentina and the worry that harsher U.S & European sanctions may hit Russia.
It is natural that certain geo-political events or updated financial reports may cause the markets to take a breather from time to time. Factors such as these reiterate the importance of having a well-diversified portfolio that reflects growth over time.