Set aside the gloom and doom and make hay while the sun still shines, advises Jim Puplava in his recent Big Picture broadcast, “As Good As It Gets—And It’s Getting Better.”
The economic picture of the U.S. was recently clouded by extreme weather not seen, in some cases, since records started being kept. Some have scrubbed away the ice from their crystal balls and predict a permanent cooling, however, even as the sun starts to rise and temperatures warm over much of the country.
Not so, says the President of PFS Group.
Jim cites a large number of factors that indicate the economy will likely improve this year:
- U.S. loan growth is starting to pick up (see here)
- Consumer confidence is steadily improving (see here)
- Housing no longer subtracting from economic growth (see here)
- Still no evidence of a recession on the horizon (see here)
- Credit markets are healthy (see here)
- Every state in the country expected to grow over the next six months (see here)
- Philly Fed PMI rose substantially (significant leading economic indicator) (see here)
Even then, let's say the economy does improve. Does that mean it's off to the races?
Not quite. Jim does think that even as the economic picture gets better, the markets will still be volatile this year.
One measure in particular that many are looking at is the four year election cycle, which predicts a peak in the market between now and the end of April, weakness into the summer, and a rebound towards the end of the year. Chris Puplava recently highlighted this in his article, "Likelihood of First Market Correction in Two Years Developing," with a composite of how the market has behaved during previous four-year election cycles:
Comments? Email us by visiting our Contact page.