Word of the Week:
GDP

Definition: Gross Domestic Product, or GDP, measures the size of an economy. In essence, it puts a dollar sign on all the goods and services that a country produces in a given year (or other period). It has 4 basic components: consumption, investment, government spending, and exports minus imports. GDP only includes over-the-table transactions. That means anything between the illegal drug trade and your neighbor's under-the-table nanny's pay don't get counted.

Key Takeaway: GDP measures the size of the economy. Investors watch GDP closely for signals as to how the economy is doing.

Fun Fact: The U.S. is the world's largest economy with $20 trillion. If California were a country, it would rank as the 5th largest economy in the world - ahead of the U.K., India, and France.