re: aust. market/institutions & us gdp
Yesterday I noted that the following, I was not making a prediction, just an observation;
'Interesting to note that the US has done the exact opposite to what our market has done in the last 10 minutes of trade for the past 4 days. Today after 7 minutes the ASX 200 is down 1.20 of a point.'
Our market in fact fell about 7 points in the last 10 minutes yesterday. Last night the S&P was up a 1/2%, the Dow had an insignificant rise & Nadaq was over 1% up.
I find it amazing that the Aussies have incorrectly predicted the US market 5 days in a row. Surely, it can't continue. The only people who could move the market that quick in 10 minutes would have to be funds/institutions. IS this why they underperform the market regularly?
--------------- The US GDP data discussed yesterday did show an adjustment downward of 1.52% for the Current Account deficit increase (see yesterdays post), however, the GDP revised estimate increased to 1.40% from 0.70% (which I did not pick). Why did it increase?
Because inventories increased by $23billion in the quarter. CNBC economists said this was good because coys are stocking up in anticipation of better conditions. However, a quick inventory build up was one of the most notable problems of the 2001 mini-recession in the US.
Can anyone tell me whether this is good or bad? Opinions appreciated.
Unfortunately, I get the feeling it is related to the slowing in consumer confidence and is an indication of worsening economic conditions to come.
