We're talking again with our friend and sponsor of the show, Zach Abraham, Chief Investment

Officer at Bullwirt Capital Management, and Guru of All Things Financial.

We have a question about some recent news reporting, fresh hot off the presses saying that

the economy is just doing so amazingly awesome that it's grown, it's like having amazing

growth, and yet we're sitting here baffled because nobody seems to actually feel that.

So where is this disconnect coming from?

Working from the home office today, so I actually just got off of a call of our weekly

investment meeting, and this was the topic of discussion.

So I think first of all, people need to realize that when you get GDP reports like this,

first of all GDP is a very, it's not fake, but it's a very massaged number and not for

intentional reasons.

There's just so many different things that can make a GDP report look really good.

For instance, you had a massive inventory build at a lot of retailers over the course

of 2022, 2022 last year, and the first part of this year.

One of the biggest juices to that GDP report, and I think it actually boosted GDP by 1.2%.

So basically, almost a quarter of the growth that we saw was due to a burn down in inventories.

Okay, well, a burn down in inventories is not really economic growth in the sense it's

going to look like that in the GDP report, but how do companies burn down in inventories?

They sell the goods for a discount, right?

So yeah, it's going to look good on a GDP report for a quarter, but it's not reflective

of real underlying economic growth, right?

So for instance, every year Nordstrom has a half yearly sale, right?

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