Fisher Capital Management: Market Performance – US Economy

Fisher Capital Management: Market Performance – US Economy Fisher Capital Management Report, Part 1 - Output growth exceeded what were once considered lofty expectations during the third quarter, as real GDP (inflation adjusted Gross Domestic Product) rose... More

Fisher Capital Management: Market Performance – US Economy Fisher Capital Management Report, Part 1 - Output growth exceeded what were once considered lofty expectations during the third quarter, as real GDP (inflation adjusted Gross Domestic Product) rose by a 3. 5% annual pace from the previous quarter. To be sure, this was the first gain in economic activity after four consecutive quarterly declines in GDP. While technically this indicates an end to the recession, we point out that on a year-over-year (YOY) basis, economic activity has still declined 2. 3%, yet it represents an improvement from the -3. 8% YOY in the second quarter, the worst annual drop in seven decades. The components of GDP were led by growth in personal consumption, which increased 3. 4% as stimulus programs such as “Cash for Clunkers” allowed consumer spending to increase by the largest amount in two years. Home construction surged at an annual rate of 23%, spurred on by the $8,000 tax credit for first-time Less