ZeroHedge often features some interesting articles that make you think. But the media site is relentlessly skeptical about the stock market. Below is a typical headline.

It goes to the point we’ve been making lately about fear-baiting narratives that investors would do well to ignore.

Below this alarmist headline is some recent U.S. data economic data that indisputably shows economic growth is accelerating and that a crash is nowhere in sight.

That means investors with well-diversified equity portfolios should be able to increase their wealth by staying the course and/or considering some of the top-rated small cap names identified in our accompanying story.



Courtesy of Hedgeye

Luckily in the world of data, the story is very different (from the ZeroHedge headline).

Consider some of the key data points we’ve received this week:

  • October’s U.S. ISM Manufacturing PMI came in at 60.8, which was the 17th month of growth and solidly in expansion territory (despite massive supply chain issues!).


  • The October U.S. Services PMI was an absolute blow out coming in at 66.7, which was a massive acceleration from September and an all-time high. Within this business activity and new orders were even higher at 69.8 and 69.7, respectively.


  • The ADP jobs report (not our preferred measure of employment but a measure nonetheless) showed the economy added 571,000, which was an acceleration from September and the highest level since June.


  • With more than 2/3s of the SP500 having reported, revenue is up near 19% Y/Y and earnings are up near 40% Y/Y.


  • Michigan Consumer Confidence ticked up +0.3 points September to October to +71.7.


  • Housing has also turned the corner from the summer with U.S. monthly mortgage applications accelerating to  +7.5% from their August lows.


Related stories: Bear Market Warning Signs? Please. Follow the Data Not Mainstream Financial Media Narratives.