Quick Post: PMI of 49.1% shows manufacturing contracts in August

Readers of this blog know I have been an advocate of the ISM PMI as a very strong component of leading indicators for economic growth and corporate earnings health. Today’s drop to 49.1% indicates a contraction in manufacturing growth (first such sign in the past 35 months!) and is a warning sign that needs to be considered within a full context of other factors.

Long-term strategic allocations to equities with a low volatility profile and fixed income with some duration exposure should outperform core positions in this environment. Higher quality investment grade corporate bonds, likewise, could provide ballast to core equities.

Disclosure:  Dattilio & Ash Capital Management is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Please first consult a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.  For more disclosure information about Dattilio & Ash Capital Management, LLC and to view the firm's Form ADV Part 2A brochure, please see the SEC Investment Adviser lookup website at https://www.adviserinfo.sec.gov/. Per 950 MASS. CODE REGS. 12.205(8)(a)2., 12.205(8)(f)-(h): Requiring Investment Advisers Registered in Massachusetts to Provide Clients and Prospective Clients With a Stand-Alone Fee Table, please see the Dattilio & Ash Capital Management Fee Table at the link here.