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Investing Specialists

Shrinking Trade Deficits Put Wind in Economy's Sails

The net deficit will not provide the tailwind that it did from 2006 to 2011, but it shouldn't hurt the recovery, either.

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As I suspected would happen, the news flow this week was really slow. Even Europe was largely ignored until Friday, when the Greek debt negotiations were put off for yet another week, sending the markets into a tailspin.

Corporate earnings this week were somewhat disappointing, with many pointing to slowing business overseas. But interestingly, the U.S. government's trade deficit was only modestly worse than expected, and the real slowing was in exports to China--not Europe.

Robert Johnson, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.