America has had the wind knocked out of its sails this year.
Volatile stock markets, weak economic growth and a hiring slowdown have created a perfect storm for nearly flat growth. The question is whether the U.S. economy and markets can right the ship in May and beyond. There’s reason to believe they can start to this week.
“We’re in a slow growth economy,” says Dorothy Weaver, former chair of the Miami Federal Reserve branch and CEO of Collins Capital. “I don’t think we’re heading for a capsized economy, but that doesn’t mean we couldn’t be hitting low winds and a doldrum.”
The economy’s storm clouds: April was rough all around. It started with news that the economy only added 126,000 jobs in March, and previous months of job gains were revised down. Retail sales for March arrived in mid-April and they were sluggish.
Then last week we learned that America’s economic growth was next to nothing, a mere 0.2% in the first quarter. Maybe the worst news about the growth: Businesses haven’t been investing in themselves this year.
The newest projections for economic growth published by the Atlanta Fed show this spring could be disappointing too — less than 1%.
“The market is having a lot of difficulty finding its footing,” says Kevin Mahn, chief investment officer at Hennion & Walsh Asset Management in New Jersey. “Part of it is this most recent volatility and concerns over economic growth.”
There is some good news. Barring the markets falling off a cliff, the bull market will become the third longest in history this week, according to Bespoke Investment Group.
Full article: America’s capsizing economy: Can it right the ship? (CNN)