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Popular Article Part Correct, Bigger Issue…

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The conclusions in this well-circulated economy article/video aren’t fully accurate, and a couple of points are more wrong than right. However, the bigger issue is that a number of things are indeed influencing the direction the economy will take over the next couple of years, and each has some degree of risk. Interpretation and behavior will need to vary depending on circumstance.

Complaining that somebody is being too optimistic or pessimistic is fine as long at the circumstance is understood. A government entity budgeting and forecasting through 2018 will need to be more cautious than a person in their early 30’s investing a little each month for retirement. Missing a budget forecast is a very bad thing. This means government forecasts might be more conservative than others. Furthermore, somebody in sales might have an optimistic read of the economy if their business activity is shorter term along with the data they track, which presently isn’t looking too bad.

Most of the economic information suggests moderate, or even better, growth for the next several quarters. But, would you bet your job or your house on this economic trend continuing for at least two or three more years? Would you bet somebody else’s job? Tabulating the numbers is always good, but how you interpret and use them is even more important. Add your own top couple or three risks to the economy in comments…

JimRounds

Post by: Jim Rounds

 

 

 

 

 

Jim RoundsPopular Article Part Correct, Bigger Issue…

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