2Q14 GDP Revisions: Boom!
So we’ve been prattling on for some time about negative economic indicators. But the recently released revision to 2nd Quarter GDP is certainly a positive indicator. (If you are interested, the NYT has a great writeup discussing some of the intricacies in calculations of GDP and how it might not be the best indicator of growth.)
Regardless of the increase – which is great news- it just hammers home the concept of taking a long term view on the economy and how it impacts business valuation. Barring truly jarring news, business values are not impacted by data in the short term, but rather how long term trends impact business performance.