Good afternoon. The federal election is 17 days away, as the parties fall over themselves spending and getting up in our business. This week, our crack team at head office compiled a synopsis of major party platforms, which – if I’m honest – just made me cranky. It’s like the ice cream truck had a million baby ice cream trucks and now they’re all grown up and there’s one on every corner, tinny music constantly playing, and absolutely no children’s ears perking up anywhere. A treat isn’t a treat if it’s everywhere, always, forever.
Speaking of which -- From our Economic Punditry:
Headed into uncharted territory – As the fiasco of first world federal funditry continues, and with no concrete proposals for a spending slowdown on the horizon, more debt may lead the U.S. (and other) government(s) and taxpayers to a financial destination to which they have not been before – and it’s not Wisconsin.
Can U.S. stocks extend the monthly winning streak? – August marked the seventh consecutive month of gains for U.S. stocks. We look at what lies ahead. History suggests strong gains through Labor Day lead to year-end strength, but weaker economic data may pour cold water on September returns.
Regional highlights: A clean sweep by the Canadian banks; Jump in Eurozone inflation unlikely to shift ECB position; Slowing growth momentum in China.
The Whole Statistical Salami Sandwich here: Global Insight Weekly
More Chart-o-grahy: Services consumption still has a lot of room to recover as a share of total consumption. While the latest U.S. wave of COVID-19 cases are showing tentative signs of peaking, it may take an additional month or two “for a sufficient decline in cases for consumers to boost the level and share of spending on services. Read: “Dude. Skip the Skip the Dishes. Get off the couch and make your own dinner.”
Another way to look at this is that the combination of easy money and robust online delivery services meant that the “stuff market” got very hot well before “the dude comes and fixes stuff market” market could. So… cars are expensive and the experienced mechanics are all booked because the junior mechanics are in their parents basements playing video games.
Enjoy your beautiful long weekend!
Eat an expensive hotdog.
But you’ll have to make it yourself – a sweetness all on its own.
Mark