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February 15, 2017 | About Those 4% US Growth Targets

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

Stock and corporate bond markets have soared since the US election in November. Bulls say bidding up assets that were already richly overvalued is all good, because demographics and debt be damned, the new Trump admin are business wizards and will make the US economy double its growth rate stat (it’s averaged 2.1% since 2009) to 4% to 2020. In reality, the math is not lining up with the confident thesis. In fact, as Goldman Sachs and many others have pointed out, Trump policies are actually like to lower, not raise, the economy’s growth trajectory from here.

Morgan Stanley’s EM Head: Trump Can’t Get 4% Growth.

Here is a direct video link.

Here is a chart of Goldman’s most bullish, base and expected growth projections, from the proposed fiscal stimulus through 2021.

February 15th, 2017

Posted In: Juggling Dynamite

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