“In what must be one of the scariest data points for equity bulls, Industrial Production just printed above all economist’s estimates with its largest rise since Dec 2010. This 2.5 sigma beat of expectations is the biggest beat since December 2010 and, given that it was data that Ben Bernanke did not have at his previous FOMC meeting, we suggest, ever so humbly, that surely this will play into his qualitative assessment of the economic thersholds and reduce the likelhood of him accelerating his bond-purchases scheme. The driver of such exuberant Industrial Production… Motor Vehicle manufacturing; which as we already know produced the largest channel-stuffing debacle in history. Sustainable? We don’t think so… As previous downward revisions appear to have provided a much bigger than expected rebound from Sandy-scuppered prior levels…”
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