Feb. 6 at 6:46 PM
$JNUG $SLV $GDX $GLD $B
"Current-dollar ➡️nominal GDP increased by 8.28 percent annualized, or
$612.298 billion, to a level of
$31.098 trillion, the current size of the U.S. economy"
If nominal GDP is up "8%" but inflation is, say, 3–4%, then real growth is only 2–3%, meaning the economy isn’t really “booming”, prices just increased.
In other words, "nominal growth" MASKS underlying weakness, which is convenient for politics & markets & that's the point, knowing that the mass public are NOT likely to know the difference. Market bubbles, Investors are likely to overvalue equities or real estate if they only look at nominal growth & ignore real output. This how stock multiples continue to get extended but insiders are dumping or selling stocks at a record pace do to nominal "growth" not real growth
Nominal GDP growth is like measuring your bank account in dollars w/out accounting for rising prices, the #'s looks bigger, but your real purchasing power hasn’t improved
