On Thursday, the equity markets enjoyed a picture perfect session with some consolidation after the huge rise on Wednesday. We heard this morning that 3rd quarter GDP rose by 4.1%, a 0.5% upward revision from prior estimates. No doubt that the Federal Reserve Open Market Committee or FOMC had this information in hand prior to making its monetary decision on Wednesday. The naysayers are going to argue that the economy grew due to inventory builds. That is a better argument to make at the end of an economic expansion rather than the beginning. We are closer to the beginning than the end.
Gold and bonds got a slight boost on the back of the GDP report. Stock futures also inched higher. We remain short gold via holding the inverse ProShares Ultra Gold Short ETF (GLL). I expect that the S&P 500 (SPX) and Dow Jones Industrials (DJI) will both make new intra-day and closing highs in today’s session.
Blackberry (BBRY), the once Research in Motion, reported another large loss, albeit less than expected. The company also reached a five year strategic agreement with Foxconn, a Chinese contract manufacturer. My question is – will Blackberry still be in business for the entire five year period of that agreement? My answer: likely not.
For the most part, the markets and its participants are in holiday mode. The news flow is light between now and the New Year. The weekend is here so don’t forget to kiss your wife (spouse), hug your kids and enjoy
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Disclosure: At the time of this commentary Scott Rothbort, his family and/or clients of LakeView AssetManagement, LLC was long GLL — although positions can change at any time.
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