Yesterday Japan revised its third quarter GDP down to 1.3% growth. Previously growth had been pegged at 4.8%. That is a reduction of 72.9%! Clearly that is a gigantic revision. So what does it all mean?
To me this suggests that the worldwide economic recovery is still shaky. Improving, but shaky. Kind of like the week after the worst of flu symptoms abate. Because GDP figures are always preliminary, we should all expect a downwards revision in U.S. GDP, too. That will likely not sit well with the financial markets as they have been pricing/discounting a stronger than forecasted recovery. Yet, retail sales this Holiday season have been tepid.
Are you a long-term investor? If so, if there are any major dips, and you aren’t at all worried about Israel bombing the heck out of Iran’s nuclear facilities, then consider investing some of that cash you are sitting on. Me? I am still sitting in energy stocks waiting for the Iranigans to blow over.
Be well y’all!
Jason
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