Good morning..and welcome to the recession train USA ! The US GDP Q4 shocks the mainstream, with a first reading of -0.1%. Officially, it takes two quarters to be a recession, but still..this number is beyond lousy. Market should be down 3%...but its only down a fraction.
Perhaps this will be considered a 'green shoot' by the end of today. After all, what little talk of the 'Fed reigning back in' will now vapourise for a few months. In fact, if there is a little concern, the talk will even swing to 'can the Fed increase monthly purchases?'
Regardless of reality, the underlying equity trend remains strongly UP, but this GDP reading will be at least 'gently' rattling the economists for the next month - until the second reading appears.
It says a lot about this market that we're set to open..flat, despite the first negative growth reading since early 2009.
back at 10am.