Given the surge in leading economic data, those awaiting an imminent recession or economic downturn in the U. S. may have a while longer to wait, said Kurt Kallus, author of Exec Spec and a frequent guest on our FS Insider podcast.
Mid-Cycle Recovery Underway
Kallaus has made several correct calls, including his prediction in 2015 that the broad U. S. stock market averages, like the Dow Jones Industrial Average and the S&P 500, would still have 2 to 3 years left to run, which has turned out correct. Now that we’re coming in on that time, should investors think about changing course?
‘Economic trends are not reversed because of time, but because of excesses,’ he stated. ‘There’s not an expiration date on a recovery. You look for either overheating or overcooling, and neither extreme has been on the horizon for years.’
He continues to be optimistic that we’ll see growth over 2 percent, and that we’re probably in the mid-stage of the bull market based on leading indicators.
This post was published at FinancialSense on 02/03/2017.