"You give it all but I want more
And I'm waiting for you I can't live without you" – U2
It's GDP day and we're all expecting some fantastic numbers at 8:30 as the US economy bounces back from Q2's -31.4% drop but, as I have pointed out before, 100% less 31.4% is 68.6% but 68% + 31.4% is only 89.35% so we need more like a 45% gain in GDP just to get back to our Q1 level, which was already crap at -5% – before Trump even had the virus to use for an excuse on what a terrible job he was doing with the economy.
Q2 was the biggest downturn in GDP in US history – including the Great Depression, including 9/11 and, since then, the Trump Administration and the Federal Reserve have put over $4,000,000,000,000 to work proping up the market. $4Tn is, by the way, an entire Quarter of GDP so, rather than be excited that the GDP is coming back to "normal" we should be alarmed at how adding 100% to the Q3 GDP ONLY gets us back to normal.
Category Q2 Q1 Q4 Q3 Q2
…
You must login to see all of Phil's posts. To read the rest of this article now, along with Phil's live intra-day comments, live trading ideas, Phil's market calls, additional member comments, and other members-only features - Subscribe to Phil's Stock World by clicking here.
To signup for a free trial membership, click here.
Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!