Stock Up On Anti-Bear Spray

Main content

Despite hurricane disruptions, the U.S. economy grew 3.3% in Q3, the fastest rate of economic growth in three years. The components of GDP are consumption, investment, net exports and government spending. So what changed in this mix? Quite simply – investment, business investment. Companies are realizing they have to invest and spend on capital equipment in order to boost productivity and stay competitive. Non-residential investment increased 7.3% over the preceding quarter. In the recent past, it has been the consumer doing the heavy lifting. Don’t worry, consumer spending is still steadily increasing. The latest consumer spending readings reported a .3% increase in October after a strong 1% surge in September. Consumers are enjoying higher wages and record high household net worth. Personal income was up .4% in October, the second month in a row. But businesses are finally coming to the GDP table and that’s good news for sustained growth. The last time we saw two consecutive months of +3% readings was in 2004/2005. Now, it looks like we may have a chance of making it three in a row with Q4. All this good news makes you wonder why the bears don’t just go into hibernation already. Please watch Doug Cote’s unequivocal anti-bear spray on CNBC..

Footer content