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Stocks Ignore GDP Downgrade, Will Set New Highs: Longboard’s Wilcox

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If no news is good news, as the old saying goes, than it would seem reasonable to suggest that old news isn't really news at all. The Commerce Department's release of the third and final reading on Q1 GDP shows growth lowered to 1.8% from the previous print of 2.4%.

While a 25% reduction in the nation's economic growth rate is not the sort of data investors like to see, it is the kind of report they're able to ignore.

"I think (we will see) a continuation of the bull market we've been in for a long time," says Cole Wilcox, CEO of Longboard Asset Management, in the attached video.

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In fact he believes the rally in equities "is something that is in place" and likely to continue as we move forward and wouldn't be surprised if a bottom was put in on Monday when the S&P 500 slumped to 1,560.

"I definitely think the pullback will reverse and take out new highs as we move forward," he predicts, adding that "whether or not (1,560) was the bottom or we're still getting there, I just don't see this (sell-off) as something that's going to get out of hand."

And so for those who are waiting for one big conclusive data point to put to rest the debate over whether and when the Fed will start easing back its bond buying program, Wilcox does not see that happening.

"I think that it is just going to be a continued creep as we move forward," he says, calling gains in housing and employment the biggest factor in a continued bull market.

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