Investment Analysis
Macroeconomic outlook of U.S. economy
For every four to six years U.S economy faces an economic slowdown. Thus the current market is now in forth year. The root of U.S. crisis and its economy can be traced backed to 2007, when U.S housing bubble burst which yields a financial meltdown in 2008. In average, the American trying to make ends meet in 2014, a market and a recession will probably look and feel the same. In early 2008, when the financial crisis began, then the U.S. national debt stood at $9.2 trillion. Figures figure out by the White House, the national debt will reach $20.0 trillion by the end of decade about 140% of our current GDP. Successful debt reduction requires fiscal constraint and policies that sustain the main expansion. This includes sympathetic financial policy and measures that address structural flaws in the nation. (Author)
The U.S. economy has grown more rapidly in the fourth quarter than estimated previously as end user spending scramble in the most three years, hence showing that expansion had thrust heading into this year’s harsh winter. Rational investors spending mostly on services, predominantly health care which helped to speed up the expansion, a sign that this year’s slow down is partly due to heavy snowfall and freezing temperatures. Retailers are waiting for the weather to improve to get a clearer picture of the economy.
Gross domestic product (GDP) grew at a rate of 2.6 percent annually from October to December, which is more than the 2.4 percent gain reported last month, and the figures from the Commerce Department showed. The norms were forecasted of 79 economists surveyed estimates it for a 2.7 percent increase.
Indicators of economy
Gross Domestic Product:
Gross Dome...
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...lar basis. Investing in a full amount may be a sucker’s bet.
References:
1. Author. (2014). what is the U.S. economic outlook for 2014? Not good. Retrieved on April 8th, 2014. Available at: http://www.useconomicoutlook2014.com/
2. Payne, D. (April 3, 2014). Kiplinger’s Economic Outlook. Retrieved on April 7th, 2014. Available at : http://www.kiplinger.com/tool/business/T019-S000-kiplinger-s-economic-outlooks/
3. Somerville, G. (April 1, 2014). ). Kiplinger’s Economic Outlook. Retrieved on April 7th, 2014. Available at : http://www.kiplinger.com/tool/business/T019-S000-kiplinger-s-economic-outlooks/
4. Su, B.W. (November, 2005). The U.S. economy to 2014. Retrieved on April 7th, 2014. Available at : http://www.bls.gov/opub/mlr/2005/11/art2full.pdf
5. DOV. (2014). Retrieved on April 7th, 2014. Available at : http://www.marketwatch.com/investing/stock/DOV/profile
"Economy & Trade." Office of the United States Trade Representative. Office of the United States Trade Representative, n.d. Web. 19 Apr. 2014.
Trading Economics, "UNITED STATES GDP REVISED UP TO 2.6% IN Q4." Accessed April 10, 2014. http://www.tradingeconomics.com/united-states/gdp-growth.
According to Payne (2014), the U.S. economic growth will strengthen in this year with an average of 2.7 percent because of various factors including the strengthening of consumer and business confidence. The other factor that will contribute to the strengthening of the country’s economic growth is Europe’s emergence from its long slumber, a trend that will brighten the prospects of foreign sales. However, this economic growth will largely be limited by ongoing government deficit reduction. As compared to the first half of 2013, economic conditions are already better since growth increased with an average of 3.7 percent in the second half of 2013. Consequently, expectations of increased economic growth in the United States are rising as people believe that this will be the best year since the tribulations of 2008 global recession. Generally, America’s GDP growth will become stronger in 2014 averaging at least 2.7 percent becaus...
"How the Great Recession Has Changed Life in America." Pew Research Centers Social Demographic Trends Project RSS. PewResearch, 30 June 2010. Web. 14 Mar. 2014.
"The Great Recession." State of Working America. Economic Policy Institute, n.d. Web. 24 Apr. 2014.
Every few years, countries experience an economic decline which is commonly referred to as a recession. In recent years the U.S. has been faced with overcoming the most devastating global economic hardships since the Great Depression. This period “a period of declining GDP, accompanied by lower real income and higher unemployment” has been referred to as the Great Recession (McConnell, 2012 p.G-30). This paper will cover the issues which led to the recession, discuss the strategies taken by the Government and Federal Reserve to alleviate the crisis, and look at the future outlook of the U.S. economy. By examining the nation’s economic struggles during this time period (2007-2009), it will conclude that the current macroeconomic situation deals with unemployment, which is a direct result of the recession.
The United States economy is an ever-changing and dynamic system. It is a structure that is made up of people who make critical financial decisions every hour of every day. Every organization, from Wall Street giants to the guy selling hot dogs on the street, is effected by the movements of the overall economy. These economic movements, or trends, can push sales for some, or put others out of business. Though they are intangible, these forces can still be measured, studied, and presented in the form of economic indicators. They can take the form of anything from the productivity of the overall economy, to the supply of money in it. This paper will review the economic indicators Consumer Sentiment Index and the Unemployment Rate and see how they affect theme park giant, Six Flags.
Lindsey, Lawrence B. “Did the Stimulus Stimulate?” The Weekly Standard. The Weekly Standard LLC. 16 Aug. 2010. Web. 25 April 2011
Economic: As seen recently, recessions can come along effecting markets for coming months or years. The emerging markets in China, India and Brazil, may boost sales for whoever gains those market shares. While the United States continues to experience a growing market its important to pay attention to the
“The Budget and Economic Outlook : Fiscal Years 2010 to 2020.” Congress of the United States
Understanding Gross Domestic product is central for understanding the business cycle and the progression of long-run economic growth (Hubbard & O’Brien, 2011, p. 631). The GDP is defined as the value-added of all goods and services produced in a given period of time within the United States (2008). The GDP is widely used as an gauge economic wellness and health of the country. What the GDP represents has a hefty impact on nearly everyone within our economy. As an example, when the economy is healthy, you will usually see wage increases and low unemployment as businesses demand labor to meet the increasing economy. The government has two types of economic policies used to control and maintain a healthy economy, fiscal policy and monetary policy. When economic growth is healthy it will have a positive on both individuals and businesses.
Organisation for Economic Co-operation and Development. (2010) Employment outlook 2010 – How does Australia compare? Retrieved August 19, 2010, from http://www.oecd.org/dataoecd/14/38/45603025.pdf.
Italy Economy 2016. (2016, February 11). Countries of the World. Retrieved May 18, 2016, from Italy Economy 2016: http://www.theodora.com/wfbcurrent/italy/italy_economy.html
According to The Balance, a financial website brand owned by About.com, the causes of the 2008 recession have been blamed on certain factors such as the decline of manufacturing orders that began in 2006, and the housing market crash in 2007 which created a domino effect that lead to recession. According to Investopedia, in the short time before the 2008 recession, stocks were at an all time high in October of 2007. Less than a year later in September of 2008, stocks were down over 20%. This is eerily similar to today’s massive growth in the economy which could eventually fall like 2008’s. One of the largest indicators of where the economy is heading stems from the current politics of the United States. Economic plans of the Trump Administration such as an investment in infrastructure, promises to lower taxes, and bringing jobs and production back to America, have arguably been some of the reasons for such a large amount of speculative growth in the economy. Unless Washington does in fact follow through on their end of the bargain, the growth that our economy is seeing today can turn in the opposite direction in the blink of an eye. Some signs of a future recession of the economy have come just recently from the unexpected unemployment increase. According to CNBC, in March of 2017, 98,000 jobs were created although it was estimated that 180,000 were
Smith, J. (2013, april 23). The Best and Worst Jobs for 2013. Retrieved october 23, 2013, from Forbes: http://www.forbes.com/sites/jacquelynsmith/2013/04/23/the-best-and-worst-jobs-for-2013/2/