The chart below shows the growth in the entire economy (Gross Output) compared to the growth in the business production side of the economy (Business Output).
GDP (Gross Domestic Product) is widely cited in discussion about the economy. In fact, it is often, falsely, asserted that GDP is the measure of the output of the economy. As defined by Investopedia:
In our assessment, the first half of the second quarter the markets continued to assume the Federal Reserve was going to let growth and inflation run to address economic recovery and employment. With higher-than-expected inflation numbers, the Federal Reserve signaled they are now paying more attention to inflation. This signaled a tapping of the brakes on growth and the bond market responded with lower rates and the stock market started to rotate out of the more economically sensitive sectors and stocks.
Great Place to Work just released its annual Fortune 100 Best Companies to Work For® 2021. The top five slots went to: Cisco, Salesforce, Hilton, Wegmans Food Markets, Inc., and Rocket Companies in that order.
Is this something that stock pickers, and not just job-seekers, should be paying attention to?
Topics: Stock Selection Research