As we’ve noted before, we think those who run small businesses are better informed about the economy than day traders and Ivory Tower economists. To the experts, good economic news indicates something bad. Like today, for example, when the AP explains why the economy growing at a better than expected 2.8 percent last quarter would cause the stock market to fall. (However, it didn’t seem to hurt Twitter’s opening day.)
Quote:
The economy expanded at an annual rate of 2.8 percent in the third quarter, up from 2.5 percent in the previous quarter, according to the government’s initial growth estimate. That made investors think the Fed could start cutting back its stimulus next month, earlier than many anticipated. It “certainly raises the possibility of the Fed pulling back in December,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “The Fed is going to test the water.”
Read the full story: Stocks slip; US growth raises fear of Fed pullback