U.S. Outlook: Gearing up for the big week ahead
Chief Economist
Next week will be a big one for investors. An advanced estimate of first-quarter GDP and the April FOMC decision will be among the activities to watch.
For more details, see highlights of my report below, followed by a link to the full U.S. Outlook, delivered on April 22.
- S&P 500 P/E ratios are rich by historical standards, which could be setting the equity market up for disappointment.
- Investors will need to see more signs that U.S. durable goods orders are rebounding if this rally is to be sustained.
- Equities will also need to look past an ugly Real GDP print for Q1 2016, which we forecast to come in at 1.0% at a seasonally adjusted rate.
- We do not expect any change in the Fed Funds target rate at next week’s FOMC meeting.
