Monday screencast: economic resilience

abnormalreturns
October 24th, 2011

One of the big problems with relying on economic forecast for your investing is that the stock market leads the economy. There is no better example of this than the stock market action of the past month or so. For some time now the economy has been hinting at better than expected results for Q3 GDP. The shock of S&P downgrade of the US masked the ongoing growth in the US. A good example of what is going on was the results from Caterpillar that showed ongoing growth. One risk to keep an eye on is the return of wrangling over the budget in 2012. In today’s screencast we look at the surprising performance of the US economy.

Items mentioned:

Estimates for Q3 GDP growth continue to rise. (Capital Spectator)

The Chicago Fed National Activity Index was up in September. (Calculated Risk)

Full steam ahead at Caterpillar ($CAT). (Money Game, MarketBeat)

Why the stock market has rallied so much of late. (Money Game)

Politics will rear its ugly head again in 2012. (FT Alphaville)

Daily price chart of Caterpillar. (Finviz)

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