Posted on 07/27/2018 7:57:40 AM PDT by BlackFemaleArmyColonel
President Donald Trump hailed a new economic report showing the U.S. economy grew at a clip of 4.1 per cent in the second quarter, hitting a high pace not reached since 2014.
'It is indeed a big one,' Trump said. Trump said he was 'honored' by the growth figure and called it a 'great day.'
The president made an unscheduled appearance on the South Lawn of the White House, flanked by his economic advisors, to tout the news.
He promised the high growth rate was not a 'one-time' thing.
'As the trade deals come in one by one we're going to go a lot higher than these numbers and these are great numbers,' Trump said.
'These numbers are very, very sustainable. This isn't a one-time shot,' Trump said.
He also made a sunny prediction about the next quarter. The latest numbers reflect April through June.
'I think the numbers are going to be outstanding. We've accomplished an economic turnaround of historic proportions,' Trump said.
'We're on track to hit the highest annual average growth rate in over 13 years,' Trump said, predicting it could be 'substantially over 3 per cent' on an annualized basis.
Trump called it an 'American economic miracle.'
'We are the economic envy of the entire world,' Trump added, adding the world leaders compliment the U.S. economy when they talk to him.
Trump also hailed a more than $50 billion reduction in the U.S. trade deficit.
(Excerpt) Read more at dailymail.co.uk ...
There is a fourth branch of government now, completely independent. Before the Reagan tax cuts, the Fed warned that there would be a tightening of the money supply, and asked Reagan for political cover. They agreed and it was done.
Does Trump have an understanding with the Fed? If not, it’s high time he made yet another deal.
I'm somewhat stunned today the market isn't rocketing up .... I don't think 4.1% GDP was baked in to current market value, then again I'm no expert and I could be wrong.
The market prices of each stock is mostly driven by future earnings estimates. Analysts that study each company would have made estimates of future earnings for each company they study. These analysts would look to each individual companies management for information about how well the company has done and what the company expected it will be doing in the future. A large increase in GDP would not immediately affect the expected future earnings of a particular company. The companies on the US stock exchange and NASD have world wide revenues so the US GDP is one indicator of the health of the market the company sells its goods in but the analyst would be concerned about all of the countries the company does business. Management and the analysts will look at risks that could affect managements plans. The overall economy of the US is one of those risks. Economies of other countries play a part, as well as other risks including competition, political, access to labor and access to materials etc. etc.
In short, past GDP is one factor in estimating future earnings but mostly a minor factor for any one company. In fact, some companies do very well during recessions and their expected earnings may actually increase.
The market may have already factored in 4% growth.
Obama had one high quarter from shifting a lot of activity from one quarter to another - which also left his record with an exaggerated drop for one quarter.
Rush looked into it since he didn’t remember either. He said, it was about Obama tinkering with the GDP metrics. Something about adding intellectual property of some sorts to the GDP, and massive government Quantitative Easing for the stock market. And other big growth in government. It wasn’t about real private sector growth that would be GDP sustainable.
Psychosis is evident in the MSM
They’d priced in an even larger uptick maybe?
Buy the rumor, sell the news. Happens all the time.
Yup, rule of 72!
This is a first for me. I'm very much the "this is my investment strategy and I'm sticking to it" kinda guy. Maybe it was just some irrational exuberance on my part? :-)
The Fed will step in and slow it down almost for certain now.
Average mtg rate now 4.5% as of this AM. I notice that housing seems to be plateauing. Historically that is a pretty low rate but many in the markets these days don’t recall the higher rates of the past, with 6% seemingly the “average”.
Both brilliant and funny at the same time. A hard combination to achieve.
Your post is spot on. That is the leftist SPIN we will hear as long as Trump is in office.
I’m more concerned that the Left has a system in place to not only SPIN economic news, but to actually SABOTAGE the economy. These RAT Bastard Socialists don’t care a whit about America or Americans unless they can control every aspect of our lives.
I hope the Trump administration has someone watching for these saboteurs and can nail them in the act.
2014? Obama never had 4% growth.
BOOKMARKED!!!
4.0% growth was reported on Friday
Mid-week, the following, on page 9, it was revised to 2.6%
“Obama’s GDP fluctuated a lot. I think the 4% in 2014 was preceded by a really bad quarter.”
The special sauce was always liberally applied to Obies GDP #’s.
His ONE quarter of good growth was followed by a -0.29. NEGATIVE 0.29!!
They must have used all their special sauce for that one quarter and had none for the following quarter.
* * * *
And he makes it look easy...
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