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Global Outlook

Say What? -2.9% GDP Makes Stocks Rise

June 30, 2014, Monday, 00:04 GMT | 19:04 EST | 03:34 IST | 06:04 SGT
Contributed by eResearch


Yes, this headline makes one do a double take. How is it even possible that GDP is this weak and stocks are pushing all-time highs???

Because most investors realize this -2.9% showing was an aberration. Or simply, a fleeting event that makes way for 2-3% GDP readings in the quarters ahead.

As is typical, investors care more about the future than the past. This is true for the overall economic landscape and how it weighs on market direction. It also comes to fruition with individual company results, which is why the movement of earnings estimates is more important than whether the company beat earnings in the past quarter.

Stay focused on the future ... it continues to be bright.

To keep you on the right investment track this year, put in a few minutes to read Kevin Matras' most recent article. It will help you take emotion out of your trading decisions and never second guess yourself again: