GNP growth slows down. What does the savy proletarian investor do? February 16, 2006Posted by deminvest in Dogs of the Dow, investment, Social investing.
Gross national product (GNP) is the dollar value of a country’s final output of goods and services in a year. It is the most important figure showing how the economy is going… It is so important that often professional investors don’t look at it. It is like the big large name writen on a map. It is easy to overllok it by searching for small prints.
As a matter of fact a very disappointing figure on GNP growth came out a couple of weeks ago, but the stock market did not react to it. We should not forget it while taking our decisions.
It is time to be more careful with stocks. We need to chose Dogs of The Dow kind of stocks that pay high dividens, and to start selling some stock which has made us smile with good returns. We can start buying some short term bonds… Do all that quietly, just in case next figure of GNP growth was low as well… Maybe if that happens some of the big guys (the rich) will notice and will send the stock market in negative area.
We could also imagine buying some high growth China stock… Just in case 🙂