Jeff Saut of Raymond James is growing increasingly confident in the US economy. He says the economy is showing signs of continuing recovery and that the major risks to the economy are unlikely to materialize:
“Consider this – it looks to me like the economic expansion is becoming self-sustaining, as can be seen in the attendant chart on page 3 from our friends at the Bespoke Investment Group, whose Economic Diffusion Index is near a six-month high. The self-sustaining sequence goes something like this: vehicle sales increase, vehicle production increases, employment increases, retail sales increase, profits increase, capital expenditures increase, credit expands, employment increases (again), and the virtuous circle repeats. Clearly there are potential headwinds – Iran could erupt, leading to $150+ per barrel oil, real estate could have another death spiral, our elected leaders could make a policy mistake, Euroquake could implode, etc. Yet, it increasingly seems to me that none of those ”boogie men“ are going to burst on the scene.”
Source: Raymond James
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.
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