Blind Spots

Week Ahead May 19-23

I hope everyone is having a good downgrade weekend. Moody’s decided to drop a downgrade on the markets at 4:30pm Friday, and we will see soon if this causes a market reaction. In terms of the week ahead, we have very little in terms of data, with just the S&P PMIs and housing data this Thursday. The PMIs will be important as investors are operating in blind spots around the evolution of the data and we have to make inferences from whatever signals we can as I will explain below.