Q4 GDP Shrinks by 3.8%
January 31, 2009
The economy posted its steepest decline in 27 years, shrinking by 3.8% in the last quarter of 2008. Still, it was better than expected 5.4% drop.
The markets interpreted these news in an interesting way, deciding that a relatively mild decline in GDP signals that more drops are on the way, pushing the recovery further in the future. I wonder whether the markets would have been happier if, for example, the GDP dropped 7% last quarter? It seems that all kinds of news tend to be interpreted negatively these days.
Entry Filed under: Market Conditions. .
Trackback this post | Subscribe to the comments via RSS Feed