Markets aren’t a roller coaster … they’re a trampoline!
Up one day, down the next (until someone breaks a leg).
Usually the headlines determine what kind of day it’ll be.
What’s the Fed up to?
How about the politicians?
What do the latest economic numbers tell us?
Well, today I look at the latest gross domestic product (GDP) numbers, which are so bad they have growth stock investors cheering.
Why would slowing economic growth get growth stock investors excited?
Before you do, a quick reminder: I record these videos a day before they air. When I refer to markets having a “great day today,” that would be Thursday.
A 180° Turnaround
Stocks had a great day yesterday, particularly in the semiconductor sector.
Incidentally, we recommended our next Bauman Letter pick yesterday … a full two weeks ahead of the next edition. The tailwinds in this space are too hard to ignore. By the end of the day, the stock had popped 6% already.
Yesterday’s market about-face is a good example of the difference between stocks and the economy. Of course, we all know this, so why does a poor GDP reading translate into happy investors?
Ah. There’s the rub.
I explain it all in today’s video.
Click here to watch or click on the image below: