Weekly Market Commentary 04/21/2017

We will find out next week just how much of a speed bump the economy hit in the first quarter. When the Commerce Department releases its first estimate of GDP on April 28, we expect it will show a growth rate of less than 1.0%, close to if not the weakest outcome in three years. That’s not what post-election optimists were expecting as the calendar page turned to 2017. Buoyed by the prospect of a pro-business incoming administration that trumpeted tax cuts, increased infrastructure spending and a relaxed regulatory environment, confidence that the economy would break out of its stubborn slow-growth trajectory soared both on Wall Street and Main Street. Based on the economy’s performance in the opening months of the year, it appears that much of that confidence has been misplaced.