The U.S. Economy
With the United States in shutdown mode, the health of the U.S. economy will be significantly impacted in a historic way. Because the economy is so dependent on consumer spending, you will likely see the worst economic statistics since the 1930s.
Despite this challenging environment, we believe the economy will recover (though not as fast as some are predicting). We believe it will take until next year for the US economy to bounce back in a meaningful way relative to how strong the economic was prior to COVID.
It will bounce back.
In this update, I will discuss the economy and issues related to economic recovery. Topics will include:
- US economy basics
- How do you measure the strength of the economy?
- Is the American economy impacted by international conditions?
- What will economic health look like in the next 12 months?
Again, remember that markets and economies do not necessarily move together simultaneously or exactly in the same path. Market movement is a function of data and sentiment. They are linked but not a mirror of each other. Keep that in mind as you observe market gyrations.
Lastly, Warren Buffet held his annually shareholders meeting this past weekend. He described his investment thoughts and perspective on the economy. In particular, I agree with his comment about America being home to innovation and resilience. It's a hopeful comment from a legendary investor that I think you might hopeful. You can read here:
Be safe and take care. Our entire team at Destination Wealth Management is committed to doing all we can to help you move towards your investment goals. We will pass through this uncertain time. We will be there every step of the way.
You can watch this week’s video here: