wednesday, the day no one wants, page-66

Could this be a speed bump to the US markets? - from CNBC

"GDP Shows Surprise Drop for US in Fourth Quarter"

"The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus."

http://www.cnbc.com/id/100419252

I suppose the figure could be revised up later on.

The USD POG perked up to $1682, a $20 rise. GDX, HUI and GDXJ are currently all up over 1%.

Yesterday some of the talking heads on CNBC (Doug Kass and Marc Faber) expected a correction soon due to the over-bought market and stretched valuations. Most of them only expect a 5% or so pullback.

Between the shouting and arguments, here is some discussion on that GDP figure for Dec 2012 from CNBC

http://video.cnbc.com/gallery/?play=1&video=3000144692

CNBC also ran a story on Oz being due for a correction - first time I have seen them providing such a report - Roger Montgomery and some other hold that view

"Australia Stocks at 21-Month High, but Brace for Correction"

http://www.cnbc.com/id/100418357

A balanced rehash of some of the issues facing the US economy by Prof Feldstein - CNBC video. Also some interesting introductory views on the effectiveness of the Fed's policies

http://video.cnbc.com/gallery/?play=1&video=3000143871

Given that most of the rise in the US sharemarket during the last 6 months has been due to PE multiple expansion, a pricking of investor sentiment has the potential to quickly reduce that expansion and hence result in a fall in the sharemarket.

loki