
By Stephen Kyne
We’ve just closed the books on the second quarter, and what a ride it’s been. Let’s take look back at the first half of 2018, and what we think lies ahead for the economy as we begin the third quarter.
The economy continues to grow at a faster than expected pace, having been revised up from initial first quarter estimates, and we expect good news when initial Q2 reports are issued in a few weeks. Many economists estimate that second quarter growth could exceed a 5 percent annualized rate, which would mark an impressive improvement over the slow growth we’ve experienced for most of this bull market.
Corporate earnings continue to exceed expectations, and guidance so far seems to indicate this rate of growth will only accelerate as we continue through the year. The first major company to report Q2 earnings will be Alcoa (AA), on July 18, and then we’re off to the races!