Comments on: Unexpected Economic Growth http://www.fundmasteryblog.com/2008/08/28/unexpected-economic-growth/ Mutual Funds, Investing, Retirement, Economy, Personal Finance Wed, 08 Sep 2010 01:50:21 +0000 http://wordpress.org/?v=2.3.1 By: Kurt Brouwer http://www.fundmasteryblog.com/2008/08/28/unexpected-economic-growth/#comment-1353 Kurt Brouwer Fri, 29 Aug 2008 15:51:50 +0000 http://www.fundmasteryblog.com/2008/08/28/unexpected-economic-growth/#comment-1353 Thanks for the clarification Rebecca and good points. I misread your acronym to read GDP, not GDI. And, you're right there is a divergence between GDI and GDP. Thanks for the link too. Thanks for the clarification Rebecca and good points. I misread your acronym to read GDP, not GDI. And, you’re right there is a divergence between GDI and GDP. Thanks for the link too.

]]> By: Rebecca Wilder http://www.fundmasteryblog.com/2008/08/28/unexpected-economic-growth/#comment-1348 Rebecca Wilder Fri, 29 Aug 2008 01:34:05 +0000 http://www.fundmasteryblog.com/2008/08/28/unexpected-economic-growth/#comment-1348 Hi Kurt, I am sorry, but my numbers are not off. I am talking about Real Gross Domestic Income (GDI), not Real Gross Domestic Product (GDP). Theoretically, they should be the same, but GDI is measure using income data and GDP is measured using expenditure data. It is interesting because the two, which should be the same, paint different pictures. See this WSJ blog: http://blogs.wsj.com/economics/2008/08/28/dont-turn-off-recession-siren-yet/ The Fed paper by Jeremy Nalewaik posits that GDI growth is a better predictor of downturns than is GDP growth. Hence, the interesing difference that I stated above. Thanks, Rebecca Hi Kurt,

I am sorry, but my numbers are not off. I am talking about Real Gross Domestic Income (GDI), not Real Gross Domestic Product (GDP). Theoretically, they should be the same, but GDI is measure using income data and GDP is measured using expenditure data. It is interesting because the two, which should be the same, paint different pictures.

See this WSJ blog: http://blogs.wsj.com/economics/2008/08/28/dont-turn-off-recession-siren-yet/

The Fed paper by Jeremy Nalewaik posits that GDI growth is a better predictor of downturns than is GDP growth. Hence, the interesing difference that I stated above.

Thanks, Rebecca

]]> By: Kurt Brouwer http://www.fundmasteryblog.com/2008/08/28/unexpected-economic-growth/#comment-1347 Kurt Brouwer Fri, 29 Aug 2008 00:11:37 +0000 http://www.fundmasteryblog.com/2008/08/28/unexpected-economic-growth/#comment-1347 Rebecca -- Your numbers are off a bit. Real GDP growth for Q2 was 3.3% as shown in this article. Q1 2008 was + 0.9%. Q4 2007 was -0.2%. The only negative quarter we have had -- so far -- was Q4 2007 and that was barely negative. Rebecca — Your numbers are off a bit. Real GDP growth for Q2 was 3.3% as shown in this article. Q1 2008 was + 0.9%. Q4 2007 was
-0.2%.

The only negative quarter we have had — so far — was Q4 2007 and that was barely negative.

]]> By: Rebecca Wilder http://www.fundmasteryblog.com/2008/08/28/unexpected-economic-growth/#comment-1343 Rebecca Wilder Thu, 28 Aug 2008 19:23:23 +0000 http://www.fundmasteryblog.com/2008/08/28/unexpected-economic-growth/#comment-1343 Interesting that real Gross Domestic Income (GDI) contracted in Q4 and Q1 2008, and posted just 2% annualized growth in Q2. Which one is correct? Clearly, one must be revised upward and/or the other downward. Interesting that real Gross Domestic Income (GDI) contracted in Q4 and Q1 2008, and posted just 2% annualized growth in Q2. Which one is correct? Clearly, one must be revised upward and/or the other downward.

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