Best Quarter Ever
The United States is not an amateur when it comes to great gross domestic product data. For example, following the end of World War II, there was immense growth in gross domestic product or GDP with an economic expansion of 16.7% on an annualized basis in the first quarter of 1950.
Current U.S. GDP data just took the previous record to school with economic growth for third quarter 2020 coming in at 33.1% on an annualized basis. That’s around two times the growth seen back in 1950. Clearly, there was a lot to recover from.
Remember, in the second quarter of this year, the U.S. GDP contracted by 31.4%.
On Thursday, U.S markets reacted positively to the news and rebounded after suffering from red days on Monday, Tuesday and Thursday. As of writing, the S&P 500 is up 1.80% on the day, erasing most of yesterday’s losses.
Yes, third-quarter GDP numbers were fantastic. Even exceeded expectations. Although, with coronavirus cases rising in the U.S. and across the globe, the road to a full recovery is still treacherous and will require more time before we can officially put this pandemic behind us.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.