“The price of light is less than the cost of darkness.”
The Q3 2014 GDP report as revised today is fairly impressive. The headline number was revised upwards from the previous 3.5% to 3.9%. While the headline number masked many deficiencies as we noted on the initial estimate, the revision to the components of GDP paints a brighter picture for the economy.
Personal Consumption Expenditures. Contribution from Personal Consumption Expenditures (PCE)…
As with many investors, we looked anxiously to the U.S. GDP release on Thursday morning after viewing the FOMC statement on Wednesday. When the headline number for GDP came out at the top range of the forecast at 3.5%, we began to ask ourselves whether the analysts projecting 3% inflation by year end may actually be on to something….
During the past four years, we investors have been inundated by financial commentators, strategists, economists and equity gurus prognosticating the coming collapse of the bond market. I can say with confidence that they have been woefully wrong during this period – I can also say with confidence that if they keep saying it, they will eventually get it right….