The Weekly Update 2/06/2026™
The Weekly Update 2/06/2026™
Economic Background Remains Positive!
I created The Seven Signs of a Changing Economy™ from independent source sited and fact-based economic data points. Over the two decades I tracked economic data points it boiled down to The Seven that became my economic weathervane. The Seven seeks to accurately suggest which way the economic wind is blowing (expanding or contracting) and how hard it is blowing (accelerating growth or contraction).
The Seven Signs have been over all positive for several years in a row, and so has the U.S. economy that Corporate America, as measured by the S&P 500, must operate in. For example, all the goods and services we produce, our Gross Domestic Product (GDP), are now up to $30.5 trillion per the Bureau of Economic Analysis (BEA), i.e. expanding to highest level on earth.
Perhaps more importantly, that growth is accelerating, per this chart from the U.S. Census Bureau.
Corporate America is operating in this expanding and accelerating economic backdrop very effectively, as in the highest annual earnings and profits ever recorded.
These two charts are in very solid uptrends, and it would be a little silly to think they take a U-turn anytime soon. Yes, valuations can separate from positive economic growth for periods of time, yet history suggests over time that valuations “always” (careful Jim) come back to the level of growth in our economy. We know this to be true, or values wouldn’t be at or near all-time high valuations as I write the edition on 2/4/2026.
These two positive economic data points suggest we continue to invest according to our well thought out and planned approach
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 has a very bright outlook. Think “Five Year Money” (Read it Here).
As always, I am interested in your thoughts, comments, and questions.
Respectfully,
James O. Lunney, CFP®
CERTIFIED FINANCIAL PLANNER™ Professional
*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. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. Investing involves risk. Loss, including loss of principal, may occur. No strategy assures success or protects against loss. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
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