U.S. Economy Picks up the Pace
We're bumping up our 2015 GDP forecast, but demographics will continue to weigh in the longer term.
Note to readers: Bob Johnson will be on sabbatical for the following six weeks, and this column will return on Nov. 15. In place of his weekly update, Morningstar.com will be featuring video reports with members of Bob's team as well as Francisco Torralba from Morningstar Investment Management, highlighting recent economic data and trends.
Despite a happy ending on Friday, markets had another tough week, with stocks down around the world. Emerging markets were again hit hard, down over 4% as a poor purchasing managers' report from China panicked already frightened investors. Europe did just a little better, down over 3%, and the U.S. did best of all, down just under 2%. Bond yields on the 10-year U.S. Treasury were up ever so slightly from 2.13% to 2.17% as the bond market digested stronger U.S. economic data. Commodities also moved modestly higher.
Robert Johnson, CFA does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.