Fed Holds Stimulus Steady, but Leaves Door Open for More 

In the past two weeks, we have seen disappointing durable goods and regional Federal Reserve Board reports, indicating that manufacturing activity remains weak relative to the larger economy. Source: Chad Moutray, Chief Economist, National Association of Manufacturers

With each successive major economic report, it increasingly appears as if the U.S. economy is inching over a cliff. The latest of these reports includes Friday’s 1st-Quarter GDP report, today’s Dallas Fed Manufacturing Survey and Q1 earnings reports. If I’m right and the economy is quickly headed south, then the stock market has become significantly overvalued relative to fundamentals and could also be headed for trouble.

First-Quarter GDP

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