Trading the taper

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On Monday, Europe received an alarming reminder that the great recession is still with us. The Greek GDP presented a Year over Year decrease of a rather depressing -2.9%. Analyst expectations anticipated a much moderate -1.7% decrease. Moreover, breaking down the change of different components in the index helped support the belief that weak demand factors were among those leading to the negative print; Durables such as Furnishing presented a -1.4% monthly decrease, while Clothing and footwear presented a -9.8% decline.

Tuesday supplied some more weak-demand evidence, but this time on the U.S. front. The U.S. Census Bureau revealed that day that Wholesalers Inventories presented a whopping 1.4% monthly increase in October, much larger than analyst estimation, which predicted a more moderate 0.3% increase. While the figure will necessarily trickle down to the US Q4 GDP, when it will be released, it is hard to believe that this is the way hoped to exit the great recession. 


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