Today’s GDP release, and in particular how the economy has adapted, a thread.👇

After 6 months of growth, the economy started shrinking again in November as tighter restrictions were in place. (Though there were variations across Wales, England, Scotland and Northern Ireland.) (1/n)
The economy shrank by 2.6% in November. In normal times this would be a significant downturn, but it is much smaller than the falls seen with the first restrictions in the spring: April GDP fell by around 20%. In that sense it is good news. But why the smaller fall? (2/n)
Firstly, some industries remain very depressed. Airlines (air transport in the chart) for example, were operating at very low levels in October so there wasn’t much further for their output to fall. This is different from the picture in Mar/Apr. (3/n)
The same is true, though perhaps less pronounced, for bars/restaurants and other parts of the service sector. (4/n)
Secondly, some sections of the economy have undergone a structural shift that has allowed them to continue to meet demand/produce output. Perhaps the best example is in retail. Overall sales in November were higher than pre-pandemic despite the restrictions. (5/n)
This is due, in part, to the shift online, which allowed sales to continue when shops were shut. These structural shifts create winners (on-line retailers) and losers (high-street), so a positive overall story can hide some significant distress for some businesses. (6/n)
There are also knock-on effects of this move on-line, with courier/postal services seeing growth through the pandemic. (7/n)
And there have been wider changes: food retailers have gained at the expenses of restaurants, and home improvement shops have benefited as consumers appeared to shift expenditure from other activities such as holidays and travel. (8/n)
Whether these changes are permanent or temporary, we will have to wait to see. (9/n)
Thirdly, individual industries (and businesses) have become more resilient to the restrictions. We saw big falls in construction during the first set of national restrictions, but continued growth during the November restrictions. (10/n)
This is likely due to social distancing in workplaces, etc. that have allowed operations to continue. (11/n)
Overall, the economic impacts are smaller this time. But we should not lose sight of the fact that the economy has still taken a large hit from the pandemic, and beneath the surface there are hugely different experiences for different sectors, businesses and people. (ENDS)

More from Economy

1/ Trend Factor: Any Economic Gains from Using Information over Investment Horizons? (Han, Zhou, Zhu)

"A trend factor using multiple time lengths outperforms ST reversal, momentum, and LT reversal, which are based on the three price trends separately."

https://t.co/udkvsdw2Lz


2/ This resembles combining multiple measures of ST reversal, momentum, and LT reversal (forecasts determined by walking forward rather than using signs from the full sample).

Unlike normal moving average signals, these are *cross-sectional.* More below:
https://t.co/wkIFLg9jtK


3/ Unsurprisingly, the Trend factor formed by this approach outperforms benchmarks in terms of both Sharpe ratio and tail metrics. It's combining momentum with two factors that are negatively correlated to it AND using multiple specifications.

More here:
https://t.co/x8Tloz3iyL


4/ "Average return and volatility of the trend factor are both higher in recession periods. However, the Sharpe ratio is virtually the same.

"Interestingly, all of the factors still have positive average returns.

"Momentum experiences the greatest increase in volatility."


5/ "In terms of maximum drawdown and the Calmar ratio, the trend factor performs the best.

"The trend factor is correlated with the short-term reversal factor (35%), long-term reversal factor (14%), and the market (20%) but is virtually uncorrelated with the momentum factor."
Priyamvada Gopal is part of a class of elite academics in the imperial core who teach the ruling class, and use woke radlib rhetoric to justify current Western imperial aggression.

She echoes propaganda against Syria, Iran, and China and is silent about Venezuela, Nicaragua, etc


Anti-anti-imperialist Cambridge University Professor @PriyamvadaGopal smears opponents of the Western neocolonial war on Syria as "Assadists"

Would she ever call liberal imperialist Obama a "blood-soaked cretin"? He has exponentially more blood on


The CIA spent over a billion dollars per year arming and training "rebels" who massacred and ethnically cleansed Syrian civilians, especially religious minorities.

But anti-anti-imperialist @PriyamvadaGopal insists these CIA-backed contras are


This was elite anti-anti-imperialist Cambridge University gatekeeper @PriyamvadaGopal's response right after colonial powers the US, UK, and France bombed Syria in April 2018 on bogus lies that have since been


Of course anti-anti-imperialist Cambridge Professor @PriyamvadaGopal's is also a supporter of the neoliberal imperialist European Union -- one of the key institutions of European necolonialism

You May Also Like

One of the most successful stock trader with special focus on cash stocks and who has a very creative mind to look out for opportunities in dark times

Covering one of the most unique set ups: Extended moves & Reversal plays

Time for a 🧵 to learn the above from @iManasArora

What qualifies for an extended move?

30-40% move in just 5-6 days is one example of extended move

How Manas used this info to book


Post that the plight of the


Example 2: Booking profits when the stock is extended from 10WMA

10WMA =


Another hack to identify extended move in a stock:

Too many green days!

Read