Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

How Long Will the Economic Sweet Spot Last?

83 views

Published on

http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last

How Long Will the Economic Sweet Spot Last?

The stock market seems to be overpriced but every times earnings come in they are positive and stocks keep going up. So long as the economy keeps chugging along it supports earnings but how long will the economic sweet spot last? CNBC writes that the economy may soon lose its power to boost stocks. Then what?

Closely followed strategist Jim Paulsen told CNBC on Monday he’s worried that economic data could stop supporting the stock market’s bull run.

“The economy has been doing so good for so long now that even if it continues to do well, it won’t any longer be a surprise,” said Paulsen, chief investment strategist at Leuthold Group.

“Economic surprises I think are going to get as high as they’re going to get,” Paulsen told “Squawk Box.” “We may see toward year end and the first quarter next year a pause in this market.”

Paulson says there is a wall of worry about the market being overpriced. The economy does not really need to falter to take stocks down. It could simply stop providing surprises. And if something in the economy happens to concern investors there are probably a lot of them ready to pull the plug on their portfolios after making nice profits on the years-long run up.

Where Is the Economy Going?

How long will the current level of economic growth last? Is Trump’s plan to stimulate the economy going to happen and if it happens is it going to work? What does the Fed say and are they going to raise interest rates or not? Bloomberg quotes Janet Yellen who says inflation is the biggest surprise in the economy this year.

Federal Reserve Chair Janet Yellen said that the U.S. central bank expects to continue to raise interest rates gradually as solid growth, a strong labor market and a healthy global economy lift prices even as she recognized that inflation has been surprisingly low.

Published in: News & Politics
  • Be the first to comment

  • Be the first to like this

How Long Will the Economic Sweet Spot Last?

  1. 1. How Long Will the Economic Sweet Spot Last? By www.ProfitableInvestingTips.com
  2. 2. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last The stock market seems to be overpriced but every times earnings come in they are positive and stocks keep going up.
  3. 3. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last So long as the economy keeps chugging along it supports earnings but how long will the economic sweet spot last?
  4. 4. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last Before We Continue… Click the links below to get your FREE training materials. Free Weekly Investing Webinars Don’t miss these free training events! http://www.profitableinvestingtips.com/free-webinar Forex Conspiracy Report Read every word of this report! http://www.forexconspiracyreport.com Get 12 Free Japanese Candlestick Videos Includes training for all 12 major candlestick signals. http://www.candlestickforums.com
  5. 5. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last CNBC writes that the economy may soon lose its power to boost stocks. Then what?
  6. 6. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last Closely followed strategist Jim Paulsen told CNBC on Monday he’s worried that economic data could stop supporting the stock market’s bull run.
  7. 7. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last “The economy has been doing so good for so long now that even if it continues to do well, it won’t any longer be a surprise,” said Paulsen, chief investment strategist at Leuthold Group.
  8. 8. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last “Economic surprises I think are going to get as high as they’re going to get,” Paulsen told “Squawk Box.”
  9. 9. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last “We may see toward year end and the first quarter next year a pause in this market.”
  10. 10. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last Paulson says there is a wall of worry about the market being overpriced.
  11. 11. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last The economy does not really need to falter to take stocks down.
  12. 12. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last It could simply stop providing surprises.
  13. 13. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last And if something in the economy happens to concern investors there are probably a lot of them ready to pull the plug on their portfolios after making nice profits on the years-long run up.
  14. 14. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last Where Is the Economy Going?
  15. 15. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last How long will the current level of economic growth last?
  16. 16. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last Is Trump’s plan to stimulate the economy going to happen and if it happens is it going to work?
  17. 17. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last What does the Fed say and are they going to raise interest rates or not?
  18. 18. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last Bloomberg quotes Janet Yellen who says inflation is the biggest surprise in the economy this year.
  19. 19. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last Federal Reserve Chair Janet Yellen said that the U.S. central bank expects to continue to raise interest rates gradually as solid growth
  20. 20. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last a strong labor market and a healthy global economy lift prices even as she recognized that inflation has been surprisingly low.
  21. 21. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last “My best guess is that these soft readings will not persist, and with the ongoing strengthening of labor markets, I expect inflation to move higher next year,” Yellen said Sunday at the Group of Thirty’s Annual International Banking Seminar in Washington.
  22. 22. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last Thus the current Fed chairperson expects the economic sweet spot to last awhile.
  23. 23. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last She notes that asset valuations like stock prices are supported by low interest rates and that could be a new norm so long as relatively low rates persist.
  24. 24. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last Hands On or Hands Off, Which Best?
  25. 25. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last In regard to Trump’s tax cut plans we wrote about whether Republicans or economists are right.
  26. 26. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last As congressional action progresses so will the belief that tax cuts are in the wings.
  27. 27. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last And thus the market may reignite and continue to go up.
  28. 28. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last But eventually, what drives stock prices is the strength of the economy and one of the factors that drives or impedes the US economy is the cost of the nearly $18 Trillion US debt.
  29. 29. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last In the end the issue comes down to who is right about tax cuts, the Republicans or the economists.
  30. 30. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last An argument can be made that things are going pretty well right now and trying to make changes could result in damage to the economic sweet spot that we are in.
  31. 31. http://profitableinvestingtips.com/stock-investing-tips/how-long-will-the-economic-sweet-spot-last In the meantime watch the earnings reports and what congress is doing.

×