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Investment Strategy Notes October 15, 2012

October 15, 2012

Plenty of data releases this week will provide the market an opportunity to measure several key data
points. The first leading indicators for October – the Empire Mfg Index and Philly Fed – will be made
published, as will several housing statistics and inflation data.
-Jason Pride, director of investment strategy, Glenmede

The Global Economy: What Lies Beneath
• The optimism that infused markets after QE3’s announcement has faded some as the doubters are
already getting louder. How much impact QE3 will have? Are the unintended consequences for savers
(and pension plans) just too large? Even emerging market central bankers have criticized the Fed’s
latest stimulus. We are believers that monetary policy has a net positive impact, but we also believe
each round of QE is less effective than the last.
• While it is likely still quite early to measure the impact of QE3, the focus has begun to turn to the hard
economic and earnings data. Earnings season has been somewhat mediocre so far, but admittedly
only a small minority of companies have reported. This week will bring a much larger number of
companies reporting, and therefore more information on how businesses are faring.
• Plenty of data releases this week will provide the market an opportunity to measure several key data
points. The first leading indicators for October – the Empire Mfg Index and Philly Fed – will be made
published, as will several housing statistics and inflation data.

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