Economy
The consumer has been holding the
economy together. While job openings
and wages have improved, new jobs
remain focused on those with lower
wages. Consumers are cautious, as
shown in a record low velocity of
money (turnover of a dollar in our
economy).
Unfortunately, the strong Dollar
and slowdown in China have hurt
exports and overseas sales, resulting
in a decline in earnings for many
companies. Manufacturing has been
taking the brunt of this with Industrial
Production and Capital Goods orders
falling in 2015. The government
continues to spend prolifically
with undersized benefits for Gross
Domestic Product (GDP).
Our economy is vulnerable to outside
shocks, especially the world’s second
largest economy, China. Unless the
consumer comes on strong, we are
likely to have a year of less than
normal growth.
|
Positives |
Negatives |
|
Consumption has been firm |
|
Strong Dollar: exports declining |
|
Households are healthy financially |
|
Manufacturing slump |
|
Stable employment |
|
Lack of beneficial government action |
|
|
|
China slowdown |
|
|
|
Consumers remain cautious |
|
The views and opinions expressed are those of James Investment Research, Inc.
This information is of a general nature and does not constitute financial advice. It does not take into account your individual financial situation, objectives or needs, and should not be relied upon as a substitute for financial or other professional advice to assess, among other things, whether any such information is appropriate for you and/or applicable to your particular circumstances. In addition, this does not constitute an offer to sell, or the solicitation of an offer to buy, any financial product, service or program. The information contained herein is based on public information we believe to be reliable, but its accuracy is not guaranteed.
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Past performance is no guarantee of future results.
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