5 Questions About The U.S. Economy Investors Must Ask In 2021 & Beyond

5 Questions Investors Must Ask

Dear reader, while this is all great, here are five questions that no one seems to be asking these days.

  1. The Federal Reserve has printed an immense amount of money and the U.S. government has spent a lot of money to make sure the U.S. economy remains afloat during the COVID-19 pandemic. Could what we’re seeing now (robust economic data) just be an illusion created by loose monetary and fiscal policies?
  2. We’ve seen an immense increase in debt in the U.S. economy over the past few years. Companies and the U.S. government have increased their debts. The pandemic has made the situation even worse. You see, debt essentially drags the long-term economic growth downward. Could the growth we’re seeing these days continue in the long term?
  3. If the U.S. economy heats up in the near term, will the Federal Reserve try to tame it by increasing interest rates, and could the economy handle a rate hike?
  4. Assets across the board have soared, and risk-taking in the financial market is at unprecedented levels. The hope is that we’ll get economic growth going forward. What if the growth we see now doesn’t last more than three or four quarters? Will investors run for the exits?
  5. A large number of Americans continue to struggle financially. The economic data may be great now, but there’s a big disparity between the rich and the poor, and it continues to get bigger. Will the disparity be amplified as the U.S. economy marches ahead?
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Disclaimer: There is no magic formula to getting rich. Success in investment vehicles with the best prospects for price appreciation can only be achieved through proper and rigorous research and ...

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