Actually, the economy is in great shape
Contrary to the media headlines, the fundamentals of the United States economy, and consequently U.S. stocks, are outstanding. The global oil price and elevated yields on longer-dated U.S. Treasuries are distractions.
TL;DR
- GDP growth is projected at 4.8% for the current quarter.
- The manufacturing sector has expanded for eight consecutive months.
- Unemployment claims are at historically low levels.
- Household wealth is at record levels, and debt obligations are decreasing.
- Core inflation is expected to decline to an annual rate of 2.3%.
- The Artificial Intelligence Revolution is driving infrastructure buildout and demand for data center computing power.
- S&P 500 earnings grew by over 50% in the second quarter.
- U.S. corporate sector enjoys record-high profit margins, partly due to technology sector productivity.
- Nvidia exemplifies strong corporate profitability with high gross margins and significant R&D investment.