Goldman Sachs described this morning’s retail sales report a “significant disappointment”. As a result, they’re cutting Q1 GDP estimates to 1.9%. The headline figure came in at a monthly decrease of 0.4% as auto sales disappointed and broader trends remained soft. The cold weather was a contributing factor, but the general sluggishness in the US economy is persisting. This report brought the year over year growth to just 3%, which is growth, but is also the slowest rate of growth since August 2010.
Muddle through is here to stay. And muddle through means QE is likely here to stay.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
Comments are closed.