The equity markets disregarded the -0.1% first estimate of 4Q12 US GDP growth reported a couple of days ago. Economists and pundits said the headline GDP number was not as bad once one delved below the surface. The view was consumer spending came in strongly, housing is still rebounding and that government spending that was much lower in 4Q12 may rebound in 1Q13.Then, today the jobs numbers came in strongly for January as employers added 157,000 jobs and previously reported figures for November and December were revised higher. Other data that provided a boost to equity market returns on Friday were the ISM manufacturing index showing expansion and the Thomson Reuters/University of Michigan consumer sentiment climbing higher. So this data helped to propel the market higher and continued the upward move experienced in January.
It has been a good experience for those investors long the equity markets.
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