Market response to bad GDP figures

You probably all saw that the financial markets on Wednesday were up very strongly. This is likely attributable to the positive comments about the economy that were made in the Federal Reserve Board’s minutes. However, the rise in the markets was also in the face of what could have been interpreted as shocking and depressing GDP numbers. It is very telling that the financial markets rose, rather than fell. That is, given the choice of which to pay attention to, negative GDP numbers or positive Federal Reserve comments, investors chose the positive view. Investors seem to have cast their votes that the outlook for the future is positive. This is also a sure sign that the gloom that has been sitting over the financial markets is lifting. Very interesting…

Jason