This is as good as it gets

The US economy continues to out-innovate, out-produce, and out-perform every economy in the world. US technology and innovation are the envy of the world. Despite the short-term uncertainty created by a messy political process, our constitutional republic that has lasted over 200 years continues to function and allow innovation and growth to continue.

The US Economy and investments markets are doing as well as can be imagined, so let’s just enjoy it for a second before something comes along and ruins it.

#1 the market is at an all-time, up 22% this year.

This is a symptom of all the causes I’ll point out in the following blog. The economy is rip-roaring, and the stock market is reacting.

#2 GDP

The US Economy continues to grow at a consistent rate. I’m going to say it. Us companies and innovation cannot be stopped. Not Covid, not inflation, not war, can stop the US innovation machine. The French want peaceful lives, American’s want innovative, exciting lives. One is better for your soul, the other better for the economy. The constant innovation, and generally friendly regulation means the US makes better hardware, software, machines, and weaponry than anyone else. It’s good to be on top.

#3 Employment rates continue to stay low, despite record immigration and high interest rates.

#4 Interest rates are trending lower. This is stimulative for the economy.

#5 Oil Prices are low, and because of consistent US energy production. America is no longer beholden to foreign countries for their energy supplies.  

#6 World conflicts are only simmering.

This can be perceived as negative or positive for the world. Generally, when conflicts are simmering it does not lead to all-out war. All-out war (like Ukraine vs Russia) happens suddenly and forcefully. If Iran wanted to go to war with Israel, it would. Like a moth flying into a flame, the US cannot seem to avoid getting involved in all-out wars. The fact that China/Taiwan and Iran/Israel is merely simmering, means the likelihood of a real war is lessened, and I think that’s good for the US.

#7 Housing tells us the story of the economy.

In some ways, housing is the economy. An exaggeration, yes, but it’s the one thing we can’t outsource, build overseas, or move away from. Housing is permanent

“The housing market represents about 15 percent to 18 percent of U.S. GDP, said Lindsey Bell, Investment Strategist at CFRA, citing figures from the National Association of Home Builders. "In other words, a weak or strong housing market can have substantial influence on the direction of the overall economy," Bell added.”

https://www.thestreet.com/markets/why-housing-is-a-leading-economic-indicator-14853734

And we need millions of new units to account for the last 14 years of building coupled with record immigration.

There you have it, a quick look at the best it can be. Enjoy October 2024 because we don’t have many months or markets that feel like it.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly. 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.