Financial Survival Network

The U.S. economy showed much stronger-than-expected growth in the first quarter than previously thought. GDP increased at a 2% annualized pace for the January-through-March period, up from the previous estimate of 1.3%. The upward revision helps undercut widespread expectations that the U.S. is heading toward a recession but I am not so sure that is realistic if the Fed’s continue pushing rates higher. We all know inflation has finally hit 4% according to the CPI but consumer spending, as gauged by personal consumption expenditures, rose 4.2%, the highest quarterly pace since the second quarter of 2021 and Core PCE prices rose 4.9% which will only fuel the Fed’s resolve to continue pushing rates higher to continue contracting the economy. Interestingly we see that exports rose 7.8% after falling 3.7% in the fourth quarter of 2022 so demand seems to be healthy. Though I think many investors are wanting to be bullish, now is not the time to embrace the market with both hands.  Remember that as we begin entering