U.S. GDP Not as Good as the Report Suggests
The year-over-year data paints a very different picture than the quarter-to-quarter annualized data we got on Friday.
Yet again, this week's economic data was nothing special, and corporate earnings and forecasts continued to be a mixed bag. News from overseas was even worse. However, U.S. equity markets turned in another winning week, with the S&P 500 up 1.7%, the Dow up less, and the Nasdaq up more. Bonds also managed a decent week, moving in tandem with improving equity markets.
I continue to believe that markets expect further central banking loosening in Europe and a U.S. Fed that is no longer under any immediate pressure to tighten. Expectations of an abnormally loose monetary were also evident in commodity markets this week as many previously slumping commodities managed to reverse their negative course despite soft economic data.
Robert Johnson, CFA does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.