Verdence: U.S. economy has 'green shoots' but don't be 'complacent'
(Kitco News) - There are "green shoots" for a U.S. economic recovery but don’t be “complacent,” said Verdence Capital Advisers. U.S. nonfarm payrolls rose by 2.5 million in May as the employment sector began to bounce from layoffs associated with the COVID-19 pandemic. Verdence cited other signs of optimism as well, such as increased turnstile activity showing transportation is picking up in New York City, increased airline travel, restaurants reopening, improvement in the Baltic Dry Index of shipping activity and more stays in hotels. “The strong jobs data for May and the aforementioned indicators on consumer behavior shed some optimism after the atrocious economic data we have seen in the depths of the pandemic,” Verdence said. “However, we are cautiously optimistic, because once you post record-low data levels, any improvement from the lows can look like a strong rebound. What we need to see is the consistent improvement in data in order to confirm a sustainable recovery in under way, especially to justify the frothy valuations in the equity market given the robust run in recent weeks.”