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QDP: Is Bad News Good News For Stocks?

Published 07/28/2022, 09:19 AM
Updated 07/09/2023, 06:31 AM
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Well, there’s the GDP, and it’s negative. I only watch CNBC eight times a year—that is, before and during the FOMC circus. So yesterday, as I was watching, I could not believe how many experts were coming out and saying that the GDP would be modest, but positive. It all goes with the everything-is-always-great narrative that, evidently, some Slopers embrace. But it was a big miss. Here we see that the last two quarters were not only a miss, but also a substantial delta from their projections.

U.S. GPD QoQ

Of course, in this bad-news-is-good-news psycho ward that we now inhabit, the fact that the economy is withering away is GREAT news for stock buyers, because it means that the Fed will run screeching in the opposite direction from their minuscule QT efforts and, as they have for the past thirteen years, absolutely dump cash onto the heads of asset buyers. As I’m typing this, the S&P 500 Futures and Russell 2000 Futures are green, and the NASDAQ 100 Futures is working on it. Here’s the /ES, which dumped briefly after the GDP but then realized the stock buyers have the Fed by the short hairs once again.S&P 500 Futures 5-Minute Chart

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