Business
This week on the One Minute Retirement Tip podcast, I’m going in depth into our quarterly update that we send to our clients to discuss the current economic and market environment as we enter the last quarter of 2021. Today, I’m talking about why I’m still positive about future growth ahead despite inflation fears, Covid risks, and uncertainty about future monetary and fiscal policy here in the U.S. There’s always a million reasons to not invest...and the vast majority of them never materialize or never have the devastating impact that some pundit on TV claims after a bad day in the stock market. Here are just a handful of reasons why we at True North thinks the future looks bright: Lots of pent-up demand from consumers. Many many Americans are better off financially than they were before Covid. We’ve got money to spend and not as many options to spend it with restrictions still in place and Covid fears overhanging. As more Americans get vaccinated and Covid morphs into a less deadly virus, Americans have cash burning a hole in their pocket and are eager to spend again. This should really bolster the economy. Related to this is the fact that Americans are collectively sitting on $2.5 trillion dollars in cash. With consumer spending being the biggest component of GDP, $2.5 trillion is an important figure. Small business formations are booming. Record amounts of new businesses are forming, which should fuel further economic growth in the years ahead. The financial system, which is the grease on the wheels for the economy - is healthy. There have surprisingly been no shocks in the financial system throughout all of this, thanks to dramatic actions by the Fed early on in the crisis. Banks are healthy and have capacity to lend more. Rising interest rates should help banks as well. These are just a few of the reasons why we’re confident that the economy is on solid ground and has room for further growth as we close out 2021 and head into next year. That’s it for today. Thanks for listening! My name is Ashley Micciche and this is the One Minute Retirement Tip podcast. ---------- >>> Subscribe on Apple Podcasts: https://apple.co/2DI2LSP >>> Subscribe on Amazon Alexa: https://amzn.to/2xRKrCs >>> Visit the podcast page: https://truenorthra.com/podcast/ ---------- Tags: retirement, investing, money, finance, financial planning, retirement planning, saving money, personal finance