First quarter’s GDP report came in at 0.1% growth which was not expected to be that low, but all the pundits blamed the weather. Investors looked past the GDP report and are hoping for a second quarter rebound. The positive reports seen last week illustrated that the US economy is improving. Jobs, ISM and Chicago PMI are all showing the economy expanding, however they are not gangbuster growth numbers. The market is looking for a catalyst to propel itself higher but we have not seen that kind of evidence yet. The old expression is three positive or negative reports makes a trend; if this data continues, Wall Street will get that catalyst. Any decent dips would translate into good entry points for cash on the sidelines.
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