Friday, January 29, 2010

5.7 percent annualized growth? Not so fast!

The headlines are shouting about the 5.7 percent growth (annualized) during the 4th quarter of 2009. But most of this is due to higher inventory levels, rather than real growth, which is estimated to be only 2.9. Still growth, but nothing like the numbers put out by the government.

This is a blip on the radar, and the recession will continue. The stock market, where the smart money is, didn't even blink. DJIA is only up 4.61 points (as I write this Friday afternoon), which the NASDAQ has plunged 19.37.

The market is a leading indicator, so most investor aren't betting on growth in the future.

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