Investors Shrug Off Weak ISM and Jobs Data as the Risk-On Trade Stages a Comeback

Stocks do not show much concern for weak economic data

Highlights

• Stocks do not show much concern for weak economic data

• Treasury curve steepening is becoming more likely

• Rosie Macro Fund continues to deliver defensive performance

• U.S. long-term unemployment numbers keep climbing

Key Takeaways

• Stocks Mainly Detached from the Weak Economic Data: The risk-on trade is back on track today. The initial negative sentiment from the soft ISM services PMI did not last long, and Friday’s weak employment numbers, not just the maligned payroll data but the contraction evident in the companion Household Survey, is now a distant memory.