What is Macro Pulse?

Macro Pulse highlights recent activity and events expected to affect the U.S. economy over the next 24 months. While the review is of the entire U.S. economy its particular focus is on developments affecting the Forest Products industry. Everyone with a stake in any level of the sector can benefit from
Macro Pulse's timely yet in-depth coverage.


Thursday, February 11, 2016

February 2016 Macro Pulse -- Snow-blind?

Crude oil prices are at decadal lows, the unemployment rate is at/below 5%, median home prices are near all-time highs, annual consumer inflation is below 1%. Sounds like “good times rolling,” right? Yet, U.S. corporations are on track to release a third consecutive quarter of year-over-year (YoY) declines in earnings and profits; U.S. gross domestic product (GDP) has grown at an average annualized rate of only 1.9% over the last five quarters, and major U.S. stock market indices have “tanked” (e.g., Nasdaq: -14.5%) since the beginning of 2016. Who saw that coming?
Snow blindness is a condition in which a person temporarily cannot see due to exposure to intense UV light. Such exposure can occur when sunlight reflects off snow (hence its name), or if proper eye protection is not worn when welding. By analogy it can also occur when individuals are inundated with incomplete information spun to sound positive (“snow”), temporarily blinding them to the realities on the ground. We interpret the year-over-year corporate earnings declines, sluggish U.S. GDP growth, and the recent stock market declines as emerging realities. In addition...
Click here to read the rest of the February 2016 Macro Pulse recap.

The Macro Pulse blog is a commentary about recent economic developments affecting the forest products industry. The monthly Macro Pulse newsletter typically summarizes the previous 30 days of commentary available on this website.

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