Heads Up!

Posted on May 2, 2016 by The Weekly Commentary

The Gross Domestic Product (“GDP”) economic report has been released for the first quarter 2016. It shows a meager .5% increase. But, we do not put much faith in its accuracy. The Bureau of Economic Analysis, according to the Wall Street Journal, uses a flawed calculation for the seasonal adjustment. The Bureau could make an adjustment but it has chosen not to thus far.

Given the math of seasonal adjustments, the first quarter growth is being understated and the three remaining quarters understated.

The take-away is to keep in mind the economy is stronger than it seems in the economic reports.

Valley National Financial Advisors, and its family of companies, has been in the Lehigh Valley since 1985. The company is independent and locally owned. As a respected and trusted organization, our relationships with many clients and their families transcend generations. We have the expertise to provide clients with financial strategies to effectively manage their existing assets and to provide for the eventual transfer of their wealth.

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Valley National Financial Advisors is proud home of the Lehigh Valley’s most CFP® – Certified Financial Planner Professionals^TM. Among other honors, Valley National has been voted Best Financial Planner in the Lehigh Valley seven times by the readers of Lehigh Valley Magazine, and ranked among FA Magazine’s Top RIAs and AdvisorOne’s Top Wealth Managers.

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