Last Thursday, the U.S. trade data was reported for the month of January reflecting a brief pause in an improving trend of export growth. On the same day, the stock market, measured by the S&P 500, moved up to a new 17-month high. The market reaction was fitting since export growth is a key driver of the economy and profits for S&P 500 companies. In fact, exports accounted for 2.3 percentage points of the 5.9 percent fourth quarter Gross Domestic Product (GDP) growth rate, this marked the biggest contribution to U.S. GDP in 13 years. Exports of American-made goods now matter more than ever to investors.
Also, last week, President Obama took action to support his goal of doubling U.S. exports within five years by signing an executive order to ‘’marshal the full resources of the United States government behind American businesses that sell their goods and services abroad’’ under his National Export Initiative.
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Return of the “Quiet” Municipal Market
February 26, 2010 Bond CommentaryThe municipal bond market, as measured by the Barclays Municipal Bond Index, has moved along at a slow and steady pace this year in contrast to the gyrations in the taxable market. Recent market action harkens back to years gone by when the municipal bond market was known as the “quiet” bond market. Taxable bonds [...]