What If America's Economic Growth Data Is Fake? An Economist Considers The Evidence
Portfolio Pulse from David Pinsen
Economist Philip Pilkington suggests that the US economic growth data may be artificially inflated due to the Biden administration's Infrastructure Investment and Jobs Act (IRA), which has spurred a construction boom. He argues that the US economy is being propped up by construction spending, supported by IRA subsidies, and questions whether this can continue until the election. Amid this uncertainty, investors are advised to bet on top-performing companies and hedge against potential market downturns. An example of a hedged portfolio is provided, which includes Nvidia, Inc. (NASDAQ:NVDA) and outperformed the SPDR S&P 500 Trust ETF (NYSE:SPY) over a six-month period.
September 13, 2023 | 4:15 pm
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NEUTRAL IMPACT
The SPDR S&P 500 Trust ETF (NYSE:SPY) was used as a benchmark for a hedged portfolio, which outperformed it over a six-month period.
The SPDR S&P 500 Trust ETF was used as a benchmark for a hedged portfolio. The portfolio outperformed the ETF, suggesting that the selected stocks performed better than the overall market. However, this does not necessarily indicate a negative impact on the ETF itself.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Nvidia, Inc. (NASDAQ:NVDA) was included in a hedged portfolio that outperformed the market over a six-month period.
Nvidia was included in a hedged portfolio that was designed to mitigate risk and still provide returns. The portfolio outperformed the market, suggesting that Nvidia's performance was strong during this period. This could potentially increase investor interest in the stock.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70