The Landing is Canceled: Growth Defies Critics

Market Narrative: Rotation Over Retreat

U.S. stocks finished lower, but the internal tape reveals a healthy re-acceleration cycle rather than a fundamental decay. The S&P 500 dipped 1.03%, primarily as Growth (IVW -1.32%) investors took profits to rebalance into Energy and Value.

Institutional sentiment remains anchored, with the VIX at 14.51. Professional money is using this period to digest gains and adjust to the reality of a 4.3% GDP world where rate cuts are no longer a guaranteed "save." If you are waiting for a recession to bail you out of poor positioning, you are fighting the data.

Economic Pulse: Persistence and Power

The American growth engine is firing. Q3 GDP was revised to 4.3%, crushing the "soft landing" consensus. We aren't landing; we are flying. Productivity is the story, allowing the economy to sustain high output while core inflation holds at 2.9%.

Labor remains the floor for consumption. Initial Jobless Claims falling to 199,000 is a generational signal of strength. Employers see the demand and are hoarding talent at all costs. Combined with a 3.3% surge in Pending Home Sales, the wealth effect remains a structural tailwind for 2026.

Global & Fixed Income Analysis

Established Markets Find Green

International markets offered rare gains this week. Established Markets (VEA) added 0.40% and Europe rose 0.59%. Capital is broadening its scope, seeking value in mature economies as the U.S. growth concentration trades begin to look exhausted.

Bonds and Yield Curves

Fixed income markets are finally acknowledging the persistence of growth. The AGG dipped 0.19% as the 10-Year yield held firm. High-yield bonds (JNK) stayed positive at +0.08%, signaling that credit markets see zero imminent recessionary threat—only a "higher-for-longer" duration reality.

Growth is accelerating, labor is tight, and capital is rotating. Use the Portfolio Blueprint to stop chasing hype and start following the tape.