On Thursday China announced that its gross domestic product in the fourth quarter 2009 grew by 10.7% year-over-year -- thats up from a revised growth rate of 9.1% in the third quarter. Given recent manufacturing reports for U.S. manufacturing activities, it is likely the the U.S. economic growth rate also accelerated in Q4.In fact, for all of 2009 the Chinese economy grew by 8.7 percent. China is now clearly on track to replace Japan as the world's second largest economy -- a feat that could happen by the end of 2010 if the Chinese keep pace with current growth metrics.
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GNE,
ReplyDeleteWhat's your take on the market reaction to Obama's plan to stick it to the banks by limiting their investment strategies. It seems like every time he opens his mouth up about the economy, the market tanks. Are we looking at a repeat of the March lows when the market was convinced we were headed to a deep recession because of overreaching by the government?
Bill,
ReplyDeleteShort term market volatility is almost always emotion based with limited facts to back up large swings. Long term market movement is almost always indicative of fact-based market movement.
GNE