Corporate Finance Associates’ Post

https://lnkd.in/gciCiyps The report below gives a good overview of the Fall 2024 M&A activity in the Industrials Industry Sector. The global industrial sector is experiencing a notable shift as economic conditions improve. According to the latest OECD Interim Economic Outlook, the global economy is showing resilience with a projected growth rate of 3.2% for 2024 and 2025. Rising inflationary pressures, which characterized previous years, are now receding, with G20 headline inflation anticipated to drop to 5.4% in 2024 and further to 3.3% in 2025, reflecting a broader trend toward economic stabilization. #industrials

Growth May Be Much Stronger Than It Appears » First quarter economic growth was stronger than the GDP report suggested. » In addition, economic activity has increased globally. » The percentage of the labor force not employed has reached an all-time low. » Massive investments in Research & Development (R&D) will drive innovation and create benefits that will last for years to come. Learn more here: https://lnkd.in/d5qMtQen  

This paper provides an interesting perspective on the current economic situation, particularly regarding the stock market's resilience to rising bond yields. Many experts had been perplexed by the current market dynamics.   The stock market's resilience to rising bond yields this year is attributed to three main factors: Increased productivity: inflation has come down because the economy has been more productive (in large part as pandemic damage to supply chains was reversed, this probably due to technology  and hybrid work accelerated propagation (my opinion),  not because the economy slowed. This allows for economic growth without inflation, making even a strong economy positive for stocks. However, the long-term sustainability of these gains, particularly from AI, is to be continued .     Growth potential: This belief stems from the expectation of a stronger economy with more capacity for growth and profits before inflation becomes a concern. Shifting perception of bond yields: Higher yields are now seen as a sign of a strong economy, benefiting cyclical sectors and risker companies despite higher borrowing costs. This differs from the past, where higher yields were seen as negative for the economy.

I go with 7 Trillion Economy by 2030-2031. Market Capitalisation of 7 Trillion from 4.6 Trillion by 2031. Market Cap to GDP of 100% from presently 150%. Change will be 3 Trillion and almost 1.5 Trillion in Market Cap will be added by Top 100 Stocks. Remain Invested. Risk- Geopolitical, Domestic politics.

Recent data show that the U.S. economy continues to show strong signs of recovery. The latest report shows that consumer spending rose by 4.2% last month, far exceeding expectations. This growth was largely due to a rebound in consumer confidence and continued improvement in the job market. Meanwhile, inflation eased, with the core Consumer Price Index (CPI) rising 3.1% year-on-year, lower than the increases in previous months. Experts noted that while the recovery is gaining momentum, there is still a need to pay attention to supply chain issues and the potential impact of the international trade situation on the economy in the future. The next few months will be a critical period, and adjustments in economic policy could have a significant impact on the market. 🏍 🏍 🏍

OECD CLI Diffusion Index: A Key Indicator for Identifying Stock Market Reversals   The OECD Composite Leading Indicators (CLIs) are a set of economic metrics that predict turning points in global economies. They combine data like industrial production, employment, and consumer confidence to provide insights into future economic trends, typically 6-9 months ahead.   Calculated by MacroMicro, the OECD Composite Leading Indicator (CLI) Diffusion Index measures the proportion of OECD countries whose CLI is rising or remains unchanged month over month or year over year. Historically, YoY changes in the Diffusion Index often foreshadowed stock market shifts, while MoM changes can provide even earlier clues.   Currently, both the MoM and YoY diffusion indices continue to rise, sitting at 94% and 71%, respectively. The upward trend suggests continued improvement in global business conditions and the stock market is supported by strengthening fundamentals.   As we move into the second half of the year, investors should keep an eye out for any peaks in the MoM and YoY diffusion indices (Monitor here: https://lnkd.in/geh4Jrwv). A reversal in these indices would suggest a weakening growth momentum in OECD economies, potentially leading to increased market volatility and even a risk of an impending downturn.   ~~~~~~~~~~ MacroMicro transforms complex financial and economic data into actionable insights in dynamic and easy-to-understand charts. Use the gift code “𝗣𝗥𝗜𝗠𝗘30𝗗” to enjoy 30 days of MM Prime for free: https://lnkd.in/gfbViafN

Currently, both the MoM and YoY diffusion indices continue to rise, sitting at 94% and 71%, respectively. The upward trend suggests continued improvement in global business conditions and the stock market is supported by strengthening fundamentals.

Market Update - July 12, 2024 The markets are experiencing a slight correction today, with the Sensex down by 0.5% due to profit-taking and global cues. However, the overall trend remains bullish, driven by the Indian economy's strong fundamentals and the government's focus on reforms and growth initiatives. Let's keep a close eye on the market dynamics and stay informed about the latest trends and insights. What are your thoughts on today's market performance? Share your analysis and let's continue the conversation! #MarketUpdate #Sensex #IndianEconomy #MarketInsights

The S&P 500 and GDP measure different aspects of our economy. While the S&P 500, a major index we often follow more closely than the Dow, looks ahead and reacts to market expectations, GDP (Gross Domestic Product) assesses past economic performance. 🔄 The market, however, has a remarkable knack for anticipating future trends, even when past economic data may not align with current market sentiments. 🚀 Sometimes, even if the market feels down, the economic data from previous periods can be strong. This highlights the importance of distinguishing between market perceptions and actual economic indicators. 📈 Kristina Kuprina, CIMA ® Katie Lindfelt Sequoia Wealth Advisors #Finance #Economics #SP500 #GDP #MarketInsights #FutureTrends

📰 𝐀 𝐛𝐫𝐢𝐞𝐟 𝐨𝐯𝐞𝐫𝐯𝐢𝐞𝐰 𝐨𝐟 𝐭𝐡𝐞 𝐠𝐥𝐨𝐛𝐚𝐥 𝐞𝐜𝐨𝐧𝐨𝐦𝐲 🌐 The U.S. Personal Consumption Expenditures (PCE) price index fell to 2.2% year-on-year in August, the lowest since March 2021. 🇨🇦 Canada’s GDP rose by 0.2% in July, compared to 0% in June. 🇺🇸 The University of Michigan Consumer Confidence Index increased to 70.1 in September, up from 66 in August. 🇨🇳 China’s Manufacturing Purchasing Managers’ Index (PMI) rose to 49.8 in September, compared to 49.1 last month. 🇨🇳 The Chinese stock market is experiencing a spectacular surge, reaching unprecedented highs. Stocks have risen by 18% in just five days, while the Beijing 50 index jumped by 15% in a single day. Trading volume has also soared, hitting 1 trillion yuan in just 30 minutes. 👉 In response to this situation, the government is implementing significant measures. Brokers are now operating 24/7, with promises of effective policies attracting investors. Additionally, there has been a massive influx of capital into exchange-traded funds (ETFs). This is encouraging investors to regain their appetite for risk, reminiscent of the euphoria seen in 2020.