The Weekly Update 9/22/2023
Bad news is bad news, but good news is also bad news!
It is a rare time in the news media, as most everything is being presented as negative news.
Perhaps this is a good time to review the things that don’t get discussed and that are unlikely to appear in your news service.
So, as you read about the UAW strike and the possible government shutdown next week, pierce through the complexity of the world and notice a few very real, quantifiable and source cited FACTS!
- Gross Domestic Product (GDP) is at an all-time high and expanding. Our U.S. economy is officially the largest ever on Earth!
- The profit margins in Corporate America are expanding thanks to ever increasing technology.
- Household income is at a record high.
- Household money market and cash on hand balances are also at record highs.
- Inflation is drifting away as each month passes and as I detailed in our last two updates of The Seven Signs of a Changing Economy™.
- Household net worth rests at the highest ever.
- Household debt, as a percent of assets, is the lowest in 48 years.
So, Investors are dancing with light shades on their heads, right?
Not even close!
As of 9/13/23 over two-thirds of investors surveyed for the Bull/Bear (Positive vs. Negative Investment Outlook) index are neutral or negative.
On 9/20/23 the Federal Reserve again paused in their interest rate hiking to stop inflation. They will continue to “talk” interest rates up but the next action they take will likely be to reduce interest rates. Mostly because, as noted above, inflation is dropping, a lot, and once again the Fed gets it wrong on interest rates.
This is an opportunity to invest in high quality companies in Corporate America before the train up the hill leaves the station, again!
I’m interested in your thoughts, comments, and observations. Feel welcome to call, email, or stop by the office and say Hi.
James O. Lunney, CFP®
CERTIFIED FINANCIAL PLANNER™ Professional
Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. 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.