Well, after bragging to my readers about how right I’ve been so far, I was wrong… sort of.
Thursday’s disappointing U.S. second-quarter GDP report was filled with mixed economic messages, and the future path of the economy is a little more uncertain than it was the day before.
On one hand, we were right that year-on-year GDP growth was unprecedented in our lifetime — the highest since 1951 — and that’s likely the biggest number we’ll ever see.
On the other hand, we were wrong in thinking that it would be the biggest of all time. Although U.S. consumers brought the heat — personal consumption was up 11.8% quarter over quarter — it wasn’t enough to counteract a surprisingly small amount of government spending relative to 2020, a lack of spending on inventories (down 1.1%), residential housing (-0.5%) or the continually lagging net exports (-0.4%).
More importantly, we should note that the U.S. consumer spent MORE of that money on LESS stuff due to supply chain disruptions and the looming specter of inflation.
There is one thing we know for sure after reading the U.S. second-quarter GDP report, however…
How to Trade the U.S. Second-Quarter GDP Report
That 12.2% year-over-year growth is only going to move lower… and lower… and lower.
And inflation, while it may not get significantly worse, is at least going to hang out right where it is for a good long while.
While it might be “transitory” to the Federal Reserve, it’s not transitory to your pocketbook… Once you spend that money, it’s gone.
So you might want to ensure you get as much bang for your buck as you can.
The asset that really “bangs” during stagflationary periods is gold… If you don’t already own some, you should.
But when gold does well, gold miners also come along for the ride.
Because of that, we wanted to re-introduce Venture Society readers to our “gold miner shopping list” we made last year. Many of those names are on sale today relative to just a month ago, and we want to start picking some up on weakness.
Today’s not the day to do it… but that day is coming.
You might want to take a look at trading the U.S. second-quarter GDP report.
All the best,
Matt Warder
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These attacks account for $190,000 lost every second of every day.
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More money will be made in cyber security than any other tech trend today.
A brand-new emergency executive order signed by the president has unlocked billions of dollars to fight this menace…
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