More Articles  Printer Friendly Version

 
Featured News    Financial Briefs    Market Data Bank    Articles Of Interest    

Despite Inflation And Omicron, A Booming Economy

4979 2

Inflation hit its highest level in 39 years in November, according to consumer-price index data released Friday, with $1 in your pocket today buying 6.8% less than it did last November. And the Omicron variant has fed fears that the nationwide shortage of workers would only worsen and dampen growth in 2022. But despite these very real worries, the fact is that an unprecedented economic boom is underway. The stock market closed at an all-time again.

4979 3

The GDPNow model estimate for real GDP growth for the fourth quarter of 2021, a seasonally adjusted annual rate, is 8.7% on December 9. That’s about four times the long-term growth rate expected by the Congressional Budget Office for the next decade. It’s a booming rate.

GDPNow is not an official forecast of the Atlanta Fed. Rather, it is a running estimate of real GDP growth for the current measured quarter based on the latest economic data. The GDPNow model grows more accurate as the end of each quarter approaches, as more data about the current quarter are released; the model has been wildly off from time to time in recent years. Even if wildly optimistic, however, it portends a growth burst.

The most average of 10 forecasts from economic experts monitored by Blue Chip Financial Forecasts, as of November 23, was for fourth-quarter growth of about 5%. The GDPNow forecast is 8.7% indicates a surprise could be underway.

4979 4

The Standard & Poor’s 500 stock index closed Friday at an all-time high of 4,712.02. The index gained +0.95% from Thursday and was up +3.75% from a December 3rd’s closing price. The index is up +71.2% from the March 23, 2020, bear market low.

Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences. You should consult the appropriate financial professional regarding your specific circumstances.
The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
This article was written by a professional financial journalist for Advisor Products and is not intended as legal or investment advice.


Email this article to a friend


Index
Should You Care About Wall Street Stock Market Predictions?
Weekly Economic Update For Investors
Despite Pandemic, Stocks Closed 2021 With A 26.9% Return
Tracking The Economic Boom
Fed Changes Its Inflation Stance
The Week's Financial News: Crosscurrents In The Economy
After Breaking Records For Six Weeks, Stocks Dropped -2.3% Friday
Already Higher Than Ever, Leading Economic Index Surged Again In October
Five Observations For Investment Planning For The Decades Ahead
Financial Economic Outlook
S&P 500 Closed Friday At Record High Again On Strong Earnings Reports
With Economic Recovery Intact, Stocks Are Near Record Again
Are The Five Stocks Driving The Market's Great Returns Overvalued?
Despite Gloomy Jobs Report, The Economic Outlook Remains Bright
S&P 500 Rebounded Today After A Difficult Week And Month

This article was written by a professional financial journalist for Beacon Financial Advisors, Ltd. and is not intended as legal or investment advice.

©2022 Advisor Products Inc. All Rights Reserved.
© 2022 Beacon Financial Advisors, Ltd. | 1800 St. James Place, Suite 101, Houston, TX 77056 | All rights reserved
P: 713-622-9981 | F: 713-622-5814 | josh@bfaltd.com |
Disclosure | Privacy Policy | Contact Us | Home