Negative Feedback Loop - Stock Market Hurt Economy in Early 2016

This is a groundbreaking report presenting an original idea not yet being discussed across media about why early year economic data being reported now has soured.

On Monday when consumer spending data was reported, it showed a disappointing result for February and a downward revision to January. The news disappointed investors and raised speculation about the well-being of the economy, even after the upward GDP revision for Q4 reported last week. I believe the decrease in economic activity at the start of this year was directly due to the disruption to the stock market in January and February, which concerned Americans enough to limit their spending habits. There are signs of it in other data as well, but it is apparently reversing in March, not coincidentally as stocks have recovered. February’s poor data is the result of a negative feedback loop, which hopefully does not develop into a downward spiral. If investors can understand this argument, it should go a long way to preventing that end for stocks. See more about the Negative Feedback Loop here.

Security Sector	03-29-16 11:30 AM
SPDR S&P 500 (NYSE: SPY)	-0.1%
SPDR Dow Jones (NYSE: DIA)	-0.2%
PowerShares QQQ (Nasdaq: QQQ)	+0.4%
iShares Russell 2000 (NYSE: IWM)	+0.4%
Vanguard Total Stock Market (NYSE: VTI)	-0.1%
Financial Select Sector SPDR (NYSE: XLF)	-0.8%
Technology Select Sector SPDR (Nasdaq: XLK)	+0.5%
Energy Select Sector SPDR (NYSE: XLE)	-1.1%
Health Care Select Sector SPDR (NYSE: XLV)	-0.0%
Consumer Discretionary Select Sector SPDR (NYSE:  XLY)	+0.2%
Consumer Staples Select Sector SPDR (NYSE: XLP)	-0.1%
Utilities Select Sector SPDR (NYSE: XLU)	+0.1%
Materials Select Sector SPDR (NYSE: XLB)	-0.9%
Industrial Select Sector SPDR (NYSE: XLI)	-0.3%
iPath S&P 500 VIX ST Futures (NYSE: VXX)	-0.1%
SPDR Gold Trust (NYSE: GLD)	+0.6%
United States Oil (NYSE: USO)	-3.5%

Please see our disclosures at the Wall Street Greek website and author bio pages found there. This article and website in no way offers or represents financial or investment advice. Information is provided for entertainment purposes only. Article should interest investors in SPDR Dow Jones Industrial Average (NYSE: DIA), SPDR S&P 500 (NYSE: SPY), PowerShares QQQ Trust (Nasdaq: QQQ), ProShares Short Dow 30 (NYSE: DOG), ProShares Ultra Short S&P 500 (NYSE: SDS), ProShares Ultra QQQ (NYSE: QLD), NYSE Euronext (NYSE: NYX), The NASDAQ OMX Group (Nasdaq: NDAQ), Intercontinental Exchange (NYSE: ICE), E*Trade Financial (Nasdaq: ETFC), Charles Schwab (Nasdaq: SCHW), Asset Acceptance Capital (Nasdaq: AACC), Affiliated Managers (NYSE: AMG), Ameriprise Financial (NYSE: AMP), TD Ameritrade (Nasdaq: AMTD), BGC Partners (Nasdaq: BGCP), Bank of New York Mellon (NYSE: BK), BlackRock (NYSE: BLK), CIT Group (NYSE: CIT), Calamos Asset Management (Nasdaq: CLMS), CME Group (NYSE: CME), Cohn & Steers (NYSE: CNS), Cowen Group (Nasdaq: COWN), Diamond Hill Investment (Nasdaq: DHIL), Dollar Financial (Nasdaq: DLLR), Duff & Phelps (Nasdaq: DUF), Encore Capital (Nasdaq: ECPG), Edelman Financial (Nasdaq: EF), Equifax (NYSE: EFX), Epoch (Nasdaq: EPHC), Evercore Partners (NYSE: EVR), EXCorp. (Nasdaq: EZPW), FBR Capital Markets (Nasdaq: FBCM), First Cash Financial (Nasdaq: FCFS), Federated Investors (NYSE: FII), First Marblehead (NYSE: FMD), Fidelity National Financial (NYSE: FNF), Financial Engines (Nasdaq: FNGN), FXCM (Nasdaq: FXCM), Gamco Investors (NYSE: GBL), GAIN Capital (Nasdaq: GCAP), Green Dot (Nasdaq: GDOT), GFI Group (Nasdaq: GFIG), Greenhill (NYSE: GHL), Gleacher (Nasdaq: GLCH), Goldman Sachs (NYSE: GS), Interactive Brokers (Nasdaq: IBKR), INTL FCStone (Nasdaq: INTL), Intersections (Nasdaq: INTX), Investment Technology (NYSE: ITG), Invesco (NYSE: IVZ), Jefferies (NYSE: JEF), JMP Group (NYSE: JMP), Janus Capital (NYSE: JNS), KBW (NYSE: KBW), Knight Capital (NYSE: KCG), Lazard (NYSE: LAZ), Legg Mason (NYSE: LM), LPL Investment (Nasdaq: LPLA), Ladenburg Thalmann (AMEX: LTS), Mastercard (NYSE: MA), Moody’s (NYSE: MCO), MF Global (NYSE: MF), Moneygram (NYSE: MGI), MarketAxess (Nasdaq: MKTX), Marlin Business Services (Nasdaq: MRLN), Morgan Stanley (NYSE: MS), MSCI (Nasdaq: MSCI), MGIC Investment (NYSE: MTG), NewStar Financial (Nasdaq: NEWS), National Financial Partners (NYSE: NFP), Nelnet (NYSE: NNI), Northern Trust (Nasdaq: NTRS), NetSpend (Nasdaq: NTSP), Ocwen Financial (NYSE: OCN), Oppenheimer (NYSE: OPY), optionsXpress (Nasdaq: OXPS), PICO (Nasdaq: PICO), Piper Jaffray (NYSE: PJC), PMI Group (NYSE: PMI), Penson Worldwide (Nasdaq: PNSN), Portfolio Recovery (Nasdaq: PRAA), Raymond James (NYSE: RJF), SEI Investments (Nasdaq: SEIC), Stifel Financial (NYSE: SF), Safeguard Scientifics (NYSE: SFE), State Street (NYSE: STT), SWS (NYSE: SWS), T. Rowe Price (Nasdaq: TROW), Visa (NYSE: V) and Virtus Investment Partners (Nasdaq: VRTS).