Economy
The implementation of the Affordable Care Act has created confusion, lowered confidence and hurt business prospects. The economy has difficulty absorbing new regulatory initiatives and health care mandates without a negative impact on GDP growth. These programs offset the natural recovery which capitalistic systems enjoy after recessions. They increase dropouts from the labor force and foster a belief among many of Washington's hostility toward business. It is hard to see a sharp advance in U.S. economic growth in 2014.
All around the world, especially the developed world, economic slowdowns are the norm. World economic growth has been estimated to be only 0.5% in the second quarter and 0% in the third (OECD data). The United States has a leadership position but has limited success in correcting worldwide economic weakness. FED actions have made it increasingly difficult to achieve strong growth in poorer countries, leading to unemployment and unrest, which some call the "Arab Spring."
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Positives |
Negatives |
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Low cost energy, cheaper commodities |
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Higher taxes hurt growth |
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World leading technology will help U.S. economy outperform other Organisation for Economic Co-operation and Development(OECD) countries |
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Increasing regulations hamper GDP expansion |
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Today's pockets of strength: homes, autos, consumer goods |
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Government actions ineffective and inefficient |
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Continued FED stimulus, low short term rates |
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Deficit spending drives artificial demand for a limited time |
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Economic Outlook
- Annual Outlook from Fund Advisor
- Provides recommendation for Investors
- Forecast for Economy, Bonds, Stocks and International
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