Successful investors react to the invisible hand without emotion and bias. Investment disciplined couple with understanding prevents false assumptions about what's driving a trend. Traders following a false assumption often get smashed when the trend changes, but the assumption(s) do not. Objective challenges to consensus beliefs or opinion often reduces the odds of falling prey to false assumptions.
MSM is stumbling over itself to talk about the 'strong' Q2 GDP numbers. Our response is big deal. We borrowed trillions of dollars, handed out a portion of them to consumers, and consumers taught to spend everything they have, goosed Private Consumption Expenditure (PCE) component of GDP to an all-time high. PCE, which is highly correlated to retail spending, has risen to nearly 70% of GDP. How high can it goes before the public realizes we're a nation addicted to debt and spending, and doesn't offer too much else? The only difference between the US and a drug addict (junkie) is that a junkie isn't sitting on a pile of nukes.
Private Consumption Expenditures As % of GDP
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