After the crazy year we’ve just had, one good question to ponder for a moment is: What does the U.S. economy look like as we head into next year?
To answer that, this article will examine three sectors by looking at economic activity (including Wall Street), the inflation situation, and of course physical gold.
So brace yourself, because if this plays out the way we fear it might, the economic storm on the horizon is less than one week away.
Here we go…
Economists still can’t come to grips with an astronomically overvalued market
It’s amazing how long a virus can be blamed for “Economic Woes.” But that’s exactly how economists summed up 2021:
U.S. economic activity resurged in 2021 after a year marked by lockdowns and stay-in-place orders, with the rebound fueled by a combination of monetary and fiscal stimulus, as well as firm consumer spending.
However, against this backdrop, the second half of this year especially has seen an economy grappling with supply-side constraints and rising price pressures. Lingering virus concerns have compounded with still-elevated demand to push up inflation.
When the government hands out free stimulus money, and also places a moratorium on mortgage payments, it would be natural to expect increased consumer demand for products and services as a result. (Along with a little market mania for good measure.)
But thinking that these pressures and demand would ease early next year, as those same economists surmised, ended up complicated by Omicron jitters.
From the same article:
Goldman Sachs: The emergence of the Omicron variant increases the risks and uncertainty for the economy anticipates GDP will grow 3.8% on a full-year basis in 2022, or down from the 4.2% clip it saw previously.
…click on the above link to read the rest of the article…