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  • Scott Poore, AIF, AWMA, APMA

Equities Shake Off GDP Report



Equities seemed to ultimately shake off a poor GDP report and higher rates for longer concerns.

Markets have been reeling ever since the Fed first floated the idea of fewer rate cuts and a delay in the first cut. Despite a 1st quarter GDP number that came in well below the expectation (+1.6% vs +2.9%), equities were able to turn in a positive week for the first time in 4 weeks. While the headline GDP is expected to be revised higher (according to Treasury Secretary Yellen), the Fed’s games of double-speak have caught up to them.


This week’s FOMC meeting and press conference will go a long way to determining where we go from here.

Meanwhile, the consumer, job market, and general economic conditions are sound. The Fed’s own National Financial Conditions Index points to “loose” financial conditions. You will hear a lot about the “Sell In May” investment moniker. However, the data shows that it’s not a winning investment strategy historically. Expect some choppy trading this week with tech earnings, Fed speak, and the Jobs Report.

 

Disclosures


The information contained herein is for informational purposes only and is developed from sources believed to be providing accurate information. The opinions expressed are those of the author, are for general information, and should not be considered a solicitation for the purchase or sale of any security. The decision to review or consider the purchase or sell of any security should not be undertaken without consideration of your personal financial information, investment objectives and risk tolerance with your financial professional.


Forecasts or forward-looking statements are based on assumptions, may not materialize, and are subject to revision without notice.


Any market indexes discussed are unmanaged, and generally, considered representative of their respective markets. Index performance is not indicative of the past performance of a particular investment. Indexes do not incur management fees, costs, and expenses. Individuals cannot directly invest in unmanaged indexes. The S&P 500 Composite Index is an unmanaged group of securities that are considered to be representative of the stock market in general.


Past Performance does not guarantee future results.

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