ft.com
Financial markets tend to approach US economic growth data releases with a simple formula. if growth > forecast that means buy, but if growth < forecast, then sell. Simply reverse the formula for bonds. Indeed, America’s 2.8 per cent annualised growth in the second quarter was instantly compared to economists’ 2 per cent forecast, with predictable results. It’s a handy heuristic. But it’s far too simplistic. Here are some steps to help put “higher than expected” numbers into context 1) Work o…
5 months ago