Market Commentary

GDP

The U.S. fourth quarter GDP number was released this week and it was stronger than expected at a growth rate of 2.1%. That means the 2019 average was slightly above 2%. When compared to the EU, which came in at an annual rate 1% and fourth quarter only .1%, the U.S. looks strong.

Even compared to China where their annual GDP was 6.2%, the U.S. looks strong. One reason is that China’s numbers fell each quarter last year and the Coronavirus assures that it will continue to fall. Also, can we really believe the numbers coming out of China? I doubt it. They are growing faster than the U.S. but how much is artificial and how much is real?

So the U.S. is steady and appears to be gaining strength, not weakening, which compares favorably to the EU and China.

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