Strategists at investment bank behemoth Goldman Sachsrecently noted that their economists expect U.S. GDP growth to remain above trendthrough the next few quarters; however, they caution that this will notnecessarily translate to equally outsize gains in the stock market.
Inthe chart below, stock market gains for the following 3, 6 and 12 month periodsare grouped by Institute for Supply Management (ISM) index values at the startof the periods. What it shows clearly is that the best stock market gainscome from good-but-not-spectacular ISM values, while the red-hot “greater than60” ISM values are typically followed by low or even negative stock marketreturns. The current ISM value is 65 – squarely in that red-hot category.
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Womack Investment Advisers, Inc.
WOMACK INVESTMENT ADVISERS, INC.
Oklahoma / Main Office: 1366 E. 15th Street - Edmond, OK 73013
California Office: 4660 La Jolla Village Dr., Ste. 100 - San Diego, CA 92122
Phone (405) 340-1717 - Toll Free (877) 340-1717
Website: www.womackadvisers.com
Womack Investment Advisers, Inc. (WIA) is a registered investment adviser whose principal office is located in Oklahoma. Womack Investment Advisers, Inc. is also registered in the State of California, the State of Illinois, the State of Indiana, and the State of Texas. WIA only transacts business in sates where it is properly registered, or excluded, or exempted from registration requirements.