Why the 4.9% GDP Print in Q3 Was “Fake News”

Sorry, but it just doesn’t pass the proverbial sniff test

Highlights

• The outlook for equities is bearish despite yesterday’s gains — major averages remain below their 50- and 200-day trendlines 

• As for the Fed tomorrow, expect a "hawkish pause" given the recent strong data on labor market and consumer spending 

• Credit markets look highly attractive relative to equities 

• If GDP really was 4.9% in Q3 (vs. potential at 1.8%), we would expect to see higher inflation and lower unemployment