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Q1 GDP came in at +2.5% while the consensus stood at +3.1%. This is another economic miss to go with other recent dissapointments in manufacturing, services, retail and employment reports.

How is this the fuel leading us back to the highs today?

Take your pick of the following:

1) Muddle Through Economy + reasonably valued stocks = going higher

2) Recent economic report softness is wrong and the economy is indeed growing faster. 

3) The Fed has rigged this game by making it unattractive to hold cash or bonds. So stocks are the natural winner. 

4) All the bulls will look foolish as the economy continues to soften with lower stock prices on the way. 

5) Other...please explain. 

Place your vote with explanatory details in the comments section below. 

 

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