AI Frenzy Drives Dow, But Economy Lags Behind
In the absence of GDP updates, the best data point for assessing the economy's growth is personal consumption expenditures, which accounts for almost 70% of GDP and has a 93% correlation with it. Based on that, our model estimates 2.4% growth in GDP. The DJIA, as of the end of October and before the recent corrections, had increased by almost 11% after inflation adjustment, more than four times the economy's growth.
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(Original air-date: 11/21/25)
