Unexpected

Another “unexpected” piece of economic news this morning, as industrial production declined. This decline (the most since May of 2009) followed an unexpected decline in retail sales which, in turn, followed an unexpectedly weak jobs report in February. To say nothing of a big miss in ISM (the largest decline in new orders in four years) and of course the previous miss in Nonfarm Payrolls (+74,000 vs. 205,000 expected in January). All blamed on the weather, because of course we have never had winter storms before so seasonal adjustment could not have taken them into account.

Markets were a bit shocked by the ISM miss; but now bad news is seen to be good news and new highs are here as Ms. Yellen (the Chair) is expected to imitate Abe-san and the bubble continues to expand.

However, it is worth mentioning that Abenomics appears to have hit the wall as Japanese economic data – and stocks – have turned sour.

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