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Q2 Economic Growth Surprises; Small-Caps Play Catch-Up; But Incoming Data Imply Underlying Economic Softness
On Thursday (July 25th), the initial Q2 GDP estimate, at 2.8% (annual rate) was, to say the least, quite a surprise. The consensus view was +2.0%, and the +2.8% growth rate doubled Q1’s 1.4%. The equity markets’ initial response, however, was a tepid one …