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Be Wealthy & Smart

222: Is the Trump Economy Going to Grow at 5% Soon?

Be Wealthy & Smart

Linda P. Jones

News, Business News, Investing, Business

4.8883 Ratings

🗓️ 31 January 2017

⏱️ 12 minutes

🧾️ Download transcript

Summary

Learn if the economy can get to 5% GDP growth quickly or not.

Weakest GDP since 2011 - went from 3.5% to 1.9% in one quarter!

Lower earnings reported by Chevon, other energy companies, Google, Colgate-Palmolive and Starbucks.

Even with some disappointing corporate results, fourth-quarter earnings are expected to show growth of 6.8 percent, which would mark the biggest increase in two years and second straight quarter of growth, according to Thomson Reuters data.

Dow hit 20,000 for the first time. Took 18 years to double - that's a 4% average annual return.

Is most of the good news already baked into 2017?

Consumer spending is up .5% in December, largest jump in 3 months, which is 2/3 of the economy. Good news there.

Pending home sales up 1.9%, 17 year shortage of housing.

Trump growth of 5% is going to take a while and won't happen right away.

Cycles are showing massive swings up and down in the market this year.

FED may raise rates 3 times - inflation is flaring up.

IMO, we have the EU break up to look forward to, a European bank failure, and a lot of cash flowing into our markets as a safe haven from China and Europe.

Other countries have been moving their funds here from China, Russia and Europe and that will likely pick up.

Cycles are showing some extreme volatility and since this is the second longest bull market ever, I wouldn't be surprised to see the economy weaken even to the point of recession and the stock market have a meaningful pullback.

Increased volatility.

Rather than try to short it, I suggest you get your shopping list ready to buy the dips, when there is real fear.

Look to corporate bonds for income and stay away from bond funds.

It will take time for President Trump to turn the economy into a faster growth GDP. In the meantime, there will be wild swings as the dollar and other currencies fluctuate.

To get "11 Quick Financial Tips to Boost Your Wealth", go to www.lindapjones.com.

Transcript

Click on a timestamp to play from that location

0:00.0

Be wealthy and smart, episode 222.

0:03.0

I'm gonna live no rich life.

0:06.0

Rich life.

0:08.0

Moving that's life.

0:10.0

If y'all know what I mean Put your hands up and declare with me

0:14.0

Yeah, I'm full of bed

0:16.0

I'm gonna live the good life

0:20.0

I'm gonna live the good life

0:21.0

and beautiful and financial freedom without budgets, boredom or bosses on

0:31.5

be wealthy and Smart.

0:34.0

And now here's your host, Linda P. Jones.

0:38.0

Welcome to Be Wealthy and Smart.

0:40.0

I'm Linda P. Jones, America's Wealth Mentor,

0:42.0

Empowering Women and Men Worldwide to Financial Freedom.

0:46.6

On this episode, we're going to explore the Trump economy.

0:50.3

A lot of people have talked about Trump getting the economy growing at 5%,

0:57.0

including Trump himself saying he's going to get the economy growing at 5%. Well that might be a worthwhile goal but is it so easy?

1:07.0

Well I think it's going to be a difficult challenge. First of all, right now we have the weakest gross domestic product that we've

1:16.6

had since 2011. We went from 3.5% growth in the third quarter to 1.9% growth in the fourth quarter.

1:27.0

So dramatic slowdown, I think the right before the election,

1:31.7

there was a nice boost there that was getting that rate up to a full 3.5 percent,

1:37.0

which was much higher than it had been trending before.

...

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