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Economic Update

December 29, 2014

Economic themes: Greece, GDP, Personal Income & Outlays, Durable Goods, Housing.

  • Greece: Prime Minister Antonis Samaras failed on his third attempt to elect a president this morning, which is expected to dissolve his government and lead to snap elections in early 2015. Investors are concerned that the far left leaning, anti-austerity Syriza party could take over, which risks compromising Greece’s international bailout.  Greek stocks, bonds, and the Euro are all down as a result.
  • GDP: Gross Domestic Product was revised to up 5% for the third quarter, marking the strongest quarter since Q3 2003. Gains were seen across health care, recreation, financial services, and software.  The price index was up 1.4%, and could fall further given the decline in oil prices, giving the Fed doves plenty of fuel.
  • Personal Income & Outlays: Personal income gained by 0.4% in November, and is up 4.2% over the past year. Consumer spending was up 0.6% in November, and is up 4% over the past year.  Headline inflation fell by 0.2% in November, and is up 1.2% over the past year, again fueling the Fed doves.  Wages seem to be rising at a faster pace, and the consumer is benefitting from falling gasoline prices.
  • Durable Goods: Durable orders fell by 0.7% in November, compared to projections of a 3.1% increase, and are up 0.3% over the past year. The weak figure reflects poorly on manufacturing.
  • Housing: New home sales fell by 1.6% in November to a 438k unit pace, below forecasts of a 460k unit pace, and median prices fell by 3.2%, though are still up 1.4% over the past year. Supply increased slightly to 5.8 months.


From all of us at Alamo Capital we hope you have a prosperous and happy new year!


This report is prepared for informational purposes only. It is not intended as an offer or solicitation for the purchase or sale of any financial instrument or service.  Market prices and other data may be obtained from outside sources and is not warranted as to completeness or accuracy. Any comments, statements and/or recommendations made herein are subject to change without notice, and may not necessarily reflect those of Alamo Capital.  Past performance does not guarantee future results.  Alamo Capital has no affiliation with any political party. Investing involves risk. Consult with a Financial Professional for additional information to determine the suitability of this or any other financial product or issue as it relates to your particular situation.

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