Mainstream media groups (yes that includes Fox New) are putting a positive spin on economic reports on the US economy. This positive spin provides support for Hillary Clinton, and Democrats claim that they’ve managed the economy so well. As traders, you have to be aware that this is going on so that you minimize losses in your trading account.
The latest example of this is the Durable Goods Orders report released on September 28, 2016. Durable goods orders came in at ZERO percent for the month of August. Here is how Reuters reported the weak durable goods orders number.
Reuters is showing a picture of a consumer presumably shopping for large consumer items like washers and dryers and then reporting that durable goods orders are up for the third straight month. The economy must be strengthening in the second half of 2016, right? Wrong. If you look at the larger trend of year-over-year change, things are far worse than the Reuters report on durable goods orders suggests.
The longer term trend chart above would have been a much more valuable picture to use instead of the consumer shopping near washers and dryers picture.
Worse, capital goods shipments are in a terrifying free fall.
Don’t get me wrong. Positive economic spin is not about Democrat bashing. I have little doubt that if it was a Republican administration, you’d have media groups doing the same thing. The larger point is that be aware of heavy spin right now when it comes to reports on the US economy as we head into the Presidential election. Your trading account just might depend on it.