In this week's Off The Cuff podcast, Chris and Mish Shedlock discuss:
- GDP Sluggish
- At 1.3% and falling
- Suspicious 'Rosy' Jobs Reports
- When no net employment growth for months
- Earnings The Same As 2011
- Yet stocks 30% higher
- Fed Hike Likely?
- Probably. But they don't want to pop the bubble
This week Chris and Mish look at the recent data — GDP growth, earnings, jobs — and try hard to connect the fundamentals to what we're seeing in the markets. But it's a tough job.
The "economic strength" behind the Trump rally just doesn't hold up to scrutiny. There's nothing to merit the tremendous boost that equities have experienced over the past 4 months. Instead, asset prices have just risen to an even more dangerous height to fall from:
I was shocked when two Fed governors came out and talked about the surprisingly strong US Economy when I am looking at all of these reports and they have been weakening. Are they stupid? Are they lying?
I just don’t get this talk here about how strong the economy is. GDP has – has been under 2% growth now on average for what 8 quarters I think, 7 maybe? This economy isn’t strong unless of course you believe that 2% is the new standard for strong.
by eannao