The Weekly Update 11/22/2024
Prepare For Lift Off!
Elaine and I were big Colorado Avalanche fans from the time they arrived from Quebec until the Kroenke Organization bought the team. The Avs won two Stanley Cups during that period, the first in Florida, the second at home in game 7.
We got to the stadium very early for game 7, only a few people in the entire arena. Slowly people wandered in, then it built to a crowd and by the end of game 7 the Avs won their second Stanley Cup, and the once quite arena was a deafening ROAR.
I believe it is the same story right now for our economy, only opposite, I think. Our economy is Roaring, and the population is mostly asleep to what is happening!
On October 30, 2024, The St. Louis Federal Reserve released the Gross Domestic Product (GDP) for the U.S. This is all the goods and services we produce as a country. It was a whopping $29.349 trillion. In my world it is hard to wrap your head around a $30 trillion dollar economy. Our GDP was up $333 billion over last month. Knowing the next 40 days are the holiday shopping sprint I think it is possible that our U.S. GDP will cross the $30 trillion dollar line by 1/1/2025.
Check out this Rocket!
Note to self, this unbelievably positive expansion of our economy is before the lights start turning on, about now, not just on the $110 billion in manufacturing plants on shored from China, and other uncool places, but more like $200 billion.
It is also before we see the effects on our productivity from Artificial Intelligence (A.I.) inputs. We are just starting to scratch the scratch of the surface of A.I. leveraged productivity.
Speaking of A.I., while most of our citizens seem to be under the ether and don’t realize the powder keg of opportunity they are sitting on to ignite their bigger financial future this is going on right under their nose!
Just like the fans slowly walking into the game 7 stadium, the investment crowd will slowly wake up to a crescendo of economic expansion! Space x is launching the most powerful spacecraft ever created and then catching the craft back at the launchpad 7 minutes later, after delivering their cargo to space.
I have yet to hear any exciting news about a starship orbiting Earth and being refueled by another as the test for a journey to Mars continues. Must be too good to report on.
The opportunity ahead is nothing less than amazing! In 1982 I was 24 and sitting down to my desk for the first time. The DJIA was 777. Today, the DJIA rests at 43,000+! The next 43 years are going to be much like that, I think. It would be cool if I was 24 again sitting down for the first time in 2024 and the DJIA was 43,000. You can only imagine what the DJIA might be 43 years from today and guess what? The nutty folks in D.C. couldn’t even mess it up!
Again, I did not say market valuations go straight up, and I did not say without volatility, yet the data flow, suggests the good old USA is still waking up from the post Covid hangover. This could be a 10 ticket ride up the net worth curve. Past performance is no guarantee of future results.
Any air pockets that might happen will keep TWSG team continuing to strategic investments to our client family’s asset allocations.
I’m interested in your thoughts, comments, and observations. Feel welcome to call, email, or stop by the office and say Hi.
Respectfully,
James O. Lunney, CFP®
CERTIFIED FINANCIAL PLANNER™ Professional
The Dow Jones Industrial Average is comprised of 30 stocks that are major factors in their industries and widely held by individuals and institutional investors.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
The economic forecasts set forth in this material may not develop as predicted and there can be no guarantee that strategies promoted will be successful.