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GDP and Market Trends
The current prospects of the gross domestic product are encouraging. GDP is on the rise at a staggering rate. As stated by the commerce department "economic growth surged in the first quarter at its fastest pace in more then two years." GDP has been on a comeback with a vengeance, coming in at a 5.8 annual percent a full point higher then expected economic analyst are enthusiastic of the rest of the year.
Corporate America is also enjoying the boost in the economy with 86% of the S&P 500 companies coming in even or above wall streets forecast for the first quarter.
Although economic growth is surging it is not expected to keep at its current pace. In one strategist's opinion (Ned Riley) " In the short term the market should flourish, then very sluggish economic progress." Regardless of the speed of the expansion, it is all but inevitable throughout 2002. With this rapid expansion comes the chance of a double dip, sliding back into a recession, but according to James Cooper and Kathleen Madigan, writers for Business Week, write "that there is no danger of a second recession."
With GDP on the rise, the surging economic activity, the FED lowering interest rates, and charts of the business and economic cycles I believe that we are on the upside of the recession and coming out strong. With the factors that are in place the market markets rise should slow but it will continue.
Economic Factors, Indicators and Forcast
Interest rates have be ...