1. The economy is merely “trudging along” at stall speed, so stocks are vulnerable
This misperception is forgivable, given that U.S. GDP growth came in at around 1% for the first and second quarters.
But to really understand the economy, you have to drill down on a lot more numbers than just GDP. And when you do so, the weak GDP numbers seem fishy. They just don’t jibe...
* Employment growth is strong ...
* Loan growth is robust...
* Wage growth is solid.
* Consumer spending is strong...
The upshot? “Concern over the economy’s performance is running high, but it is misplaced...
2. No one has gotten a raise in several decades
Donald Trump loves this one...
But there’s just one little problem here. The “stagnant wage” claim is just not true...
3. People are angry and worried about the sluggish economy, so they support Trump...
...If people are bitter and worried about the economy, they sure don’t show it in their spending habits...
4. We are a nation that’s drowning in debt
There’s little doubt this is true for the federal government. But be skeptical of anyone who extends this concept to the private sector...
5. Low oil prices devastated the oil patch, hurting jobs growth overall
This was one of the fears when oil prices tanked. But this fear has not played out...
6. Technology helps us get more done at work ...dvances in technology make it easier to goof off than... ...the economy is near full employment and it’s harder to fill jobs.
But one caveat is in order: The first year of a presidential term often brings a recession, especially when the party in power changes. So if Trump catches up to Clinton and wins in November, look out.
(Excerpt) Read more at marketwatch.com ...
