BACK TO THE FUTURE
By Edward Jones Company
Blog editor’s Note: As Edward Jones is the financial advisor of this daily online publication, permission has been granted to pillartopost.org [p2p] to republish certain data to our readership. PillartoPost.org selected artwork from the Internet.
After a year that upended social and market norms, the distribution of COVID-19 vaccine should allow the economy to return to a new normal as we progress through 2021:
--Household consumption will remain the backbone of the GDP, but spending habits will be different.
--The labor market is poised to improve, benefiting from increased productivity and rising wages, but office settings and commutes won’t look the same.
Edward Jones Company believes we are in the initial stages of a new expansionary cycle, offering a favorable runway for financial markets over time. That said, we expect a few bumps along the way, as conditions look to live up to the expectations that drove the strong stock market recovery last year.
To view the 2021 forecast predicting a return to a new normal (that’s good) in the year ahead: Click here.
Meanwhile here are eight key views (in brief) for the year ahead.
1. The US economy gets a boost from the shift to post-vaccine phase. Leadership shifted sharply after vaccine news.
2. Unemployment continues to decline, supporting a consumer comeback.
3. The bull market continues with broader shoulders
4. The Federal Reserve keeps its policy rate near zero even as the economy improves
5. Longer-term interest rates rise modestly as inflation ticks up.
6. The Global economy recovers, but geopolitical uncertainties remain a source of volatility
7. Government debt rises to new heights but doesn’t come to a head yet.
8. The US dollar’s rise takes a breather. For details of the above eight key points click here.