As we mentioned in last week's article, we are providing our most current outlook on global economic growth. We will update our projections periodically to reflect our latest views.
Economic indicators have been very confusing for investors. “Good news” about economic growth has been perceived by the markets as “bad news”, as it could lead to reduced monetary stimulus from the Federal Reserve. In this article, we will identify some key economic information and separate each point into good news and bad news, then come to a final consensus as to our specific views about the economy and how it will impact stock market growth moving into 2014.
1. Slow Economic Growth
Economic growth in the United States has been mostly flat coming out of the recession in 2008-09. In the 2nd quarter of 2013, real GDP growth was a mere 2.5%. The economy has been “muddling along” for quite some time. We anticipate slow economic growth will continue into 2014.