'First Quarter GDP May Be as low as !.2, but stocks don't seem to care'

Maybe all the corp execs haven't finished exercising all their stock options yet.

and ones who are have been using their windfall from tax cuts to buy back stock (of course they are not investing the tax cuts, that's just a fairy tale)

There are fewer equities trading but much more money in the 1% to spend on equities, so the price skyrockets.

We're in a massive corporate debt bubble - and P/E ratios are at 2007 levels.

Expect a "correction" in the next few months.

who have stock options are making fortunes from the rising price of their corporate stock.

The Atlanta Federal Reserve Bank's most recent projection of the first quarter GDP has it at around 2.7. That's probably overly optimistic, but 1.2 is probably overly pessimistic.

https://www.frbatlanta.org/cqer/research/gdpnow


Which may be why "stocks don't care."

"A CNBC survey of 11 forecasters over the weekend finds first quarter GDP estimates averaging just 1.2%, down nearly a point from the fourth quarter.

Deutsche Bank shaved 0.3% off its first quarter number due to the coronavirus effects and 0.4% because of Boeing."


https://www.cnbc.com/2020/02/10/first-quarter-us-gdp-may-be-as-low-as-1point2percent-because-of-coronavirus-but-stocks-dont-seem-to-care.html

Probably inflated by all the wealthy folks having so much $ and battling with all the generic investment apparatuses for best prices, thus the gamesmanship of evil that man created is bloated almost like some guy we know?

Jan 21st just can't get here soon enough!

The damage done from it though, we will rise better off, so I keep that in mind.

market top for the S&P as I recall.

[The 'doctrinaire' rely on Fibonacci numbers. Many elliottwavers try and improve profitability by adjusting EW targets with various other indicators, sometimes many indicators].

They also predict a rebound in the second quarter.

Seems pretty speculative at this point. The Atlanta Fed, as of Friday, was still projecting a 2.7 GDP, which probably is overly optimistic. But 1.2 is probably overly pessimistic.

The posts in this thread are taking the prediction of 1.2% GDP growth in the first quarter (which isn't even half over yet), as being based on some market correction or crash that will continue through the year. In fact, if one bothered to look for and find the article on which the OP is based, one would see that the prediction flow from some analysts projection of the impact of the coronavirus and Boeing's problems and that the GDP will rebound by the second quarter:


"Concern about the coronavirus is weighing heavily on the outlook for first quarter growth and some forecasters suggest the equity market is not taking the threat as seriously as the bond market.

A CNBC survey of 11 forecasters over the weekend finds first quarter GDP estimates averaging just 1.2%, down nearly a point from the fourth quarter. Economists see a bounce back to 2% growth in the second quarter, depending on the severity of the virus both in China and in other countries."

https://www.cnbc.com/2020/02/10/first-quarter-us-gdp-may-be-as-low-as-1point2percent-because-of-coronavirus-but-stocks-dont-seem-to-care.html

especially to corporations. They're doing massive stock buybacks, pumping the price for the executives and the major stockholders. The stock market is now completely divorced from the larger economy, which is not doing well.

The OP forgot the link, https://www.cnbc.com/2020/02/10/first-quarter-us-gdp-may-be-as-low-as-1point2percent-because-of-coronavirus-but-stocks-dont-seem-to-care.html

it's artificially propped up. The next president will inherit a flaming pile of garbage and be blamed for it.

Wreck the economy every time they are in power. Then use that as a reason to keep us from doing anything that helps the people plus blame us for the wreck. To many of the American people keep on buying there BS.

Sorry, I messaged you and you didn't edit, so time to lock.