Economics
A $25 Trillion Stock Rally Was Built on GDP Growth No Better Than This
- Bloomberg survey forecasts GDP growth of 1.8% next year
- That matches the average over the past decade as stocks surged
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Terrified that shrinking forecasts for economic growth are sounding the death knell for equities? You wouldn’t be the first.
It’s more or less a bull-market tradition to peek at growth estimates right around Thanksgiving and declare the rally in stocks doomed. In the current version, the S&P 500 is up 24% ahead of a year in which gross domestic product isn’t expected to crack 2%. Divergences like that are symptoms of euphoria that investors always regret.