Morning Journal--The Fed and the wealth effect

News on Stocks in Our Portfolios

United Technologies misses by $0.04, misses on revenue

·         United Technologies (UTX): Q1 EPS of $1.23 misses by $0.04.

·         Revenue of $14.75B (+2.4% Y/Y) in-line.

 

Economics

   This Week’s Data

            March leading economic indicators came in at +0.8% versus expectations of +0.7%.

 Other

            The Fed and the wealth effect (medium and a must read):

            http://advisorperspectives.com/commentaries/hois_041814.php

 

            Transitory income and the 1% (short):

            http://gregmankiw.blogspot.com/2014/04/transitory-income-and-one-percent.html

            The length of the current economic expansion is about average (short):

            http://pragcap.com/is-the-expansion-long-in-the-tooth

            How much longer can this credit expansion go on (medium)?

            http://www.zerohedge.com/news/2014-04-21/what-credit-bubble-looks

            The latest data on savings versus spending (short):

            http://www.zerohedge.com/news/2014-04-21/keynesian-knightmare-us-savers-outnumber-spenders-record-numbers

            And to put a finer point on it (medium):

            http://www.zerohedge.com/news/2014-04-21/retail-store-closures-soar-2014-highest-pace-lehman-collapse

Politics

  Domestic

More corporate cronyism (short):

http://cafehayek.com/2014/04/the-sour-fruits-of-cronyism.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+CafeHayek+%28Cafe+Hayek%29