GDP Up 3.5% After the Fed - So Buy, Sell or Hold Stocks?

Third quarter GDP was reported up 3.5%, and that’s good news. No really, it’s good news. In the recent past, when investors hoped for mildly positive economic data in order to keep the Fed at bay, really good news meant the Fed might turn hawkish faster. Today, though, now that we know the Fed’s plans are solid, really good news is really good news. Wednesday, when the Federal Open Market Committee (FOMC) announced it would indeed conclude its quantitative easing program and look toward higher rates in 2015, stocks (NYSE: SPY) altered their previous upward trajectory and headed lower. If you have been following along with my column, then you were able to ride the market higher over the week and a half into the meeting on my forecast and you were ready for the change in plan as well. See my market report here, and be sure to catch my next report covering the positive driver for the market next week.