Economic Signs Are Fine Amid The Distractions
Published Friday, October 2, 2020, 8:45 p.m. EST
The signs indicate the economy is doing fine. Amid distractions, the latest data depicts a full recovery in the size of the economy in the second half of 2021. Here are the facts.
While President Donald Trump's hospitalization dominates the news and has led to some stock price volatility, the new economic data released this past week shows a reversion to the mean in personal disposable income, spending, and savings, as well as government aid to Americans and the consensus forecast.
The signs indicate the economy could return to the record growth rate of 2019 in the second half of 2021, about six months earlier than previously expected.
The stock market took the unexpected news of the President's infection declining by -0.96% from Thursday's close. The Standard & Poor's 500 stock index ended Friday at 3,348.44, a gain of +1.5% from a week ago, snapping a four-week losing streak. The S&P 500 is +39.78% higher than its March 23rd bear market low.
Stock prices have swung wildly since the coronavirus crisis started in March and volatility is to be expected in the months ahead.
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