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What The 33.1% Jump In GDP Really Means

With coronavirus cases exploding in the United States and Europe again, to the election that’s now only 1 day away, and everything else that’s going on…

Things are nuts.

Today I want to give you clarity and tell you What The 33.1% Jump In GDP Really Means going into election week to help you make better investment decisions…

  1. Third Quarter Earnings Continue

Third quarter earnings began reporting two weeks ago.  This week is another big one with more than 3,700 companies worldwide reporting updated earnings.

Including some big names we’ve talked about in the past.

And others.

Will tech continue to thrive this quarter as it did in the last one?

Will restaurants, car companies, airlines, and others continue getting crushed?

Will roles reverse?

I’ll keep you updated as necessary on anything important with the economy or any company I’ve written about in the coming weeks as needed.

Seeing quarterly and yearly earnings helps me understand what’s going on in the market via individual stocks…

Another major thing I need to update you on is the United States GDP numbers from last week.

  1. Gross Domestic Product (GDP) – Released October 29th

As I said last week…

This is important…

Gross Domestic Product (GDP) is “the total monetary or market value of all the finished goods and services produced within a country’s borders in a specific period. As a broad measure of overall domestic production, it functions as a comprehensive scorecard of a given country’s economic health.”

Essentially this measures whether the economy is growing or contracting and by how much.

Since the Coronavirus pandemic began in March, GDP cratered in the United States as you can see in the chart below.

And in much of the world.

Last quarters reading in the US was negative 31.4% on an annualized basis… The worst reading we’ve seen in US history… Yes, even worse than at any point during The Great Depression.

Is GDP back in positive territory and helping us climb out of this recession?

Is it still negative, meaning the economy is still contracting?

We’ll find out on October 29th.


On October 29th, 2020, the latest United States GDP report came out and showed a record increase of 33.1%

This was better than analyst estimates around 31%.

And far higher than the previous record increase of 16.7% in 1950.

This is fantastic because it means the economy is getting back on track.

However, this huge increase means the US economy is still 3.5% smaller than it was at the end of 2019.

This equates to about a $742 billion smaller economy.

And when the economy shrinks you see higher unemployment numbers.

Job losses have slowed from their highs in March and April.

But the unemployment rate is still 7.9% which means an estimated 12.6 million people are still out of work.

As I’ve also said in the last several weeks…

This is all great that things are getting better.

But the recovery appears to be slowing now as we move into Fall.

Especially with coronavirus cases exploding right now.

  1. Huge Explosion In Coronavirus Cases Worldwide

When this pandemic first started 10,000 new cases a day freaked people out.

Then we broke the 100,000 mark soon after… And then hovered in the 200,000 to 300,000 new daily cases worldwide for months.

In mid-October we had our first ever 400,000 new cases worldwide in a single day.  And have spent most days since then above that number.

And then on October 28th the world broke the 500,000 new cases worldwide in a single day… Actually, shattered the previous record with 548,552 cases that day alone.

Most of the new cases are in the US and Europe as of this writing.  And this has already led parts of Europe to lock their citizens back down again.

Will the US be shut back down again and crush the already slow recovery in the coming weeks?

This is the major story to watch. Yes, even more important than the election. And I’ll keep you updated on this and how it could affect you, your investments, and the economy going forward.

Here are the articles from the last week in case you missed any…

Until then, use the following links to some of our recent articles to learn other ways to protect yourself and your investments in these uncertain times. 

Disclosure – Jason Rivera is a 13+ year veteran value investor who now spends much of his time helping other investors earn higher than average investment returns safely. He does not have any holdings in any securities mentioned above and the article expresses his own opinions. He has no business relationship with any company mentioned above.

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