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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: Freedom Fighter who wrote (1473)3/20/1999 9:26:00 AM
From: Freedom Fighter  Read Replies (3) of 1722
 
I don't know what to make of this article. I'm posting it because it's the third article I read in the last two weeks that said that 4th quarter GDP growth is highly suspect. The funny thing is that the other two talked about the way GDP is calculated for computers.

I don't want to have a conversation on a subject that isn't of any import to my investing, but this is one reason why some economists are against using these sorts of stats to control monetary policy. It is somewhere between difficult and impossible to measure all this stuff. There is also always the risk of politics overcoming sound mathematics, statistics, and economics. When interest rates are set by savings levels instead of Fed chiefs, the economic numbers and their accuracy aren't an issue.

In any event, if I find the links to the other articles I'll post them. At a minimum, the problems with economic figures give more credence to the value investor "bottom up" approach.

mbeconomics.com
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