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:
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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.
"Summary." U.S. Bureau of Labor Statistics. U.S. Bureau of Labor Statistics, n.d. Web. 20 May 2014.
All but four countries in the world has external debt (“Country Comparison: Debt External”). Having a debt is almost as common as having a mortgage. Since its establishment, The United States has always been in debt (“Historical Debt Outstanding – Annual”). The US national debt has had five sharp increases previously in its history. The reasons include civil car and the two World W...
The economy has been progressing, new inventions, and ideas have funded America's economy. However, There were times when America's economy had dropped to a sudden standstill and many
Economic growth can be defined as increases in per capita real GDP (gross domestic product) measured by its rate of change per year. Growth rates are very important because even a small change can make vast difference in the coming years. The knowledge of economic growth is also important because it can provide the means to allow us to gain valuable insights. According to Robert D. McTeer, president and chief executive officer of the Federal Reserve Bank of Dallas, two factors determine the rate of economic growth: productivity increases (more output for the same amount of inputs), and labor (the number of hours worked).
In order to assess the current state of the economy, the examination of important economic indicators or variables has always played a vital role in the understanding of the complex economic systems we live in. The analysis of these economic variables studied by many, not only has served as a tool to evaluate the current economic performance of a country, but also has allowed experts to envisage and continue the pavement of an economy's road. Currently, some economic variables have had favorable improvements indicating a general good outlook for the economy for the following months, requiring a further individual analysis and comparisons in order to foresee crisis or successes.
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/
Projected Supply, Demand, and Shortages. (2002, July). Retrieved January 21, 2008, from FCI Global USA, Inc: http://www.fciglobalusa.com/doc_news1_en.php#chart9
"Salary Reports, 2013 Wage Forecast, Market Compensation | WageWatch Ibrief Blog." WageWatch Ibrief Blog RSS 092. N.p., 30 Jan. 2013. Web. 15 Apr. 2014.
In December 2007 The National Bureau of Economic Research (CNN) said that the United States of America had fallen into a recession. The recession meant that people were loosing jobs and that people were spending too much money and even money that they did not have. A major reason that the United States fell into the recession was because banks and private businesses were giving credit to people who could not afford to pay back or had a bad credit to begin with. This was a major problem to all types of busin...
The current state of the economy in the United States has been slow in recent months. While the economy is not currently in a recession, we may eventually fall victim to the first recession we’ve had in nearly ten years. The economy in general is showing growth, just not much. It will be difficult to predict what exactly will happen to the US economy in the future. Many economists do not agree on what will become of the economy. Some feel that we will begin a recession over the next year, and some feel that there is significant policy implementation that will allow us to dodge a recession and regain our economic strength. There are many factors that make up the US economy. The means in which I will discuss the overall growth and current status of the economy is by analyzing the Gross Domestic Product, and discuss the factors that cause it to rise and fall.