GDP expansion slows. Is trouble ahead for the markets?


Two very interesting articles for those who have 401ks in the market. Turns out our economy grew at .1% this quarter instead of the expected 1.2%. This is already down from fourth quarter economic growth of 2.6% which is closer in line with a healthy economy. Add this to the fact that margin trading has reached an all time high indicating we are now over levered in the market. Any moderate pullback could trigger a rapid de-leverage. Small investors don’t stand a chance against Wall Street power houses who make money on transactions (ie buy and sell). They make money when the market goes up and make money on the sell side when the market goes down.    This is why investing for cash flows is always a better investment.  No need to gamble on the up and down whims of wall street firms with deeper resources than any small investor.  Take a look at both articles below.

Economic Slowdown

Investors overlevered

Category : News



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