The 'October Surprise': A 5% GDP Growth Rate

Summary The September PMI flash is signaling a 5% Q3 GDP growth and robust labor market gains, confirming the GDPNow 5.1% estimate. However, inflation is also accelerating, and 10Y yields spiked above the 5% level in reaction, in addition to market pricing a more aggressive Fed. The stock market is facing a correction with 10Y yields above 5%, while gas prices still remain the main focus leading to the midterms. Spencer Platt/Getty Images News The October surprise The Mid-term election on November 3rd in quickly approaching, and the current indications are that the Democrats could take the control of the House and even the Senate. The Republicans still have the month of October to This article was written by Damir Tokic 14.77K Followers Follow Commodity Trading Adviser (CTA), member of National Futures Association. Professor of Finance, research on Global-macro issues. Editor-in-Chief, Journal of Corporate Accounting and Finance. Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.