from Secular Investor:
Recent economic data do not show much strength, at least not in the U.S. The Q1 Gross National Product in the U.S. pointed to an economic contraction of -0,7%. It was the second consecutive year in which the economic activity declined quarter-on-quarter. That has not happened since the credit crisis of 2008.
The American economy clearly has been impacted by the strengthening dollar. But we also believe that real growth is fading. Additionally, we know an interest rate hike will occur sooner or later, which will undoubtedly have economic repercussions. Considering those elements the peformance of the broad averages should not come as a surprise.
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