After a much worse than expected final GDP report last week, the upcoming shortened trading week will be filled with potential market moving economic news. With the markets closed on Friday, Thursday morning investors will receive both the employment report and the jobless claims report. Both of these reports have marketing moving potential. Other key reports this week:
- Chicago PMI and Pending Home Sales (M)
- Manufacturing PMI, ISM Manufacturing Index and Construction Spending (T)
- ADP Employment Report and Factory Orders (W)
- Employment Situation Report, Jobless Claims and International Trade (Th)
One interesting article contained in this week's magazine was written by Aswath Damodaran, Ph.D, a Professor of Finance at the Stern School of Business at New York University. The article, Bubble, Bubble, Toil and Trouble: The Costs and Benefits of Market Timing, provides detail around using financial metrics to determine whether the market is in a bubble or not. One of his conclusions,
"On a personal note, I have never found a metric or metrics that allow me to have the combination of conviction that a bubble exists, that the correction will be large enough and/or that the correction will happen within a reasonable time frame, to be a market timer. Hence, I don't try! You may have a better metric than I do and if it yields more conclusive results than mine, you should be a market timer."