Our FEATURE today focuses on the unexpected increase in the Nation's GDP which includes profits of $134 Billion in corporate production in Q3 opposed to a loss of $15 Billion in Q2. The Bureau of Economic Analysis (BEA) also reported an increase in corp profits of 5.2% for the past quarter. These results should better support PE ratios that had become overextended and posed a risk of a significant correction. In the real estate sector the S&P Core Logic Case -Schiller Index reported that residential market values have now exceeded the 2006 highs not adjusted for inflation. Case-Schiller also projected that Phoenix would be the best market nationally for price appreciation of 5.9% in 2017. Other topics include: France's switch to conservatism, the Italian Referendum, Barron's 10 Favorite Stocks for 2017, Demonetization in India, Hyperinflation in Venezuela and taking a bite out of AAPL.
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