The continued deceleration in qtr to qtr GDP is alarming and with the major input to GDP from inventory rebuilding mostly behind us as well overall stimulus, we may be facing a near zero GDP in coming quarters, my question is how long can the market move opposite to the reality?
Mostly from cost cutting, companies profits have not been bad in general but with the Consumer still 70% of the economy where is the DRIVER going forward?
Personal savings was revised upward to 6.2%, austerity will come at a price....last cycle peaked near 12% in late 70's early 1980's......but did set up last great bull mkt.
IMHO the risks are to the downside.
D
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2 comments:
I agree.
Have a great weekend
Jay
Same to you Jay.....in ST of COURSE anything is possible....and I am praying somehow we get economic traction and slowly work to sustainability....just not sure that is highest probability.
As always the case, when everyone sees the trend and the light or blackness that is when already too late to jump on....or off....can never be 100% sure of any damn thing...
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