Tag "gdp growth"

GDP Per Capita: Even Less Than Meets The Eye

Today’s lesson will look at GDP Per Capita, and economic data point that helps keep things in perspective. The most common statistic used to measure the size and growth rate of a nation’s economy is Gross Domestic Product (GDP). However, GDP as most commonly used can be a flawed measurement…

4 Takeaways From 2nd Quarter GDP Data

On Friday July 29th, 2016, the Bureau of Economic Analysis (BEA) released the 2nd quarter GDP data and revisions for prior quarters. At a disappointing annualized growth rate of only 1.20%, second quarter GDP widely missed consensus expectations of 2.50% growth. Coincidently the current 1-year average growth rate has risen…

Why The U.S. Economy Is Stronger Than 2Q GDP Suggest

The equity markets have moved into a consolidation phase following the strong rally that carried the S&P 500 Index (INDEXSP:.INX) and Dow Jones Industrials to record highs in July. Despite the lack of headway the past two weeks, stocks remain near the pinnacle of the rally suggesting under the surface,…

Market Update: Gold Rallies Higher, S&P 500 Bulls Hold On

S&P 500 futures barely budged following disappointing GDP data showing a miss with 1.2% vs 2.5% expected. We simply saw a fractional pullback on the S&P 500 Index (INDEXSP:.INX) before the stock market quickly found support and moved higher. Digging deeper into GDP data… The consumer is doing very well, logging in…

Citi Surprise Index Negative For 16 Months And Counting

An update on Eliminating Surprises with the Citi Surprise Index In his 2016 State of the Union Address, President Barack Obama accused those claiming the American economy is in decline of “peddling fiction”. Few economic prognosticators have actually stated that the U.S. economy is in decline. However, many including ourselves…

GDP Trends And Omens: A Warning In Today’s Data

While there is no doubt that patience is a virtue for investors, exercising prudence is equally important. In our prior article “Limiting Losses”, we examined how taking prudent measures, at certain times, can enhance your ability to create wealth over the long-term for your clients. Despite basic math and historical…

Weak Q1 GDP Growth May Obscure Underlying Economic Strength

Key Takeaway: First quarter GDP growth could fail to meet forecasts, but Q1 weakness in GDP is becoming a recurring theme. Other measures of the economy point to improving conditions or persistent strength. While our recent experience has been over-optimistic forecasts, such has not always been the case. The initial…

U.S. Economic Update: Are We Due For A Recession?

Key Takeaway: Federal Reserve studies suggest expansions are lasting longer and do not die just from old age. No one knows what the future will hold, but current evidence suggests recession risk remains minimal and even some of the weaker areas of the United States economy are seeing signs of…

Equity Valuations Stretched: Do Not Say You Were Not Warned

“What The Fed did, and I was part of it, was front-loaded an enormous market rally in order to create a wealth effect… and an uncomfortable digestive period is likely now.” – Former Dallas Federal Reserve Governor Richard Fisher – January 5, 2016.   Do Not Say You Were Not…