Our theme that a new business cycle expansion began in 2016 is easy to see when looking at the renewed strength in the basic industrial and material sectors, which we have highlighted in past newsletters. Less obvious – and just as important however – is the persistent consumption trends since the 2008-2009 Great Recession.
While consumers have been the backbone of most expansion cycles, they have been the only GDP component keeping our economy from a long economic winter this decade. Now that the industrial sector is making a comeback with a rare boost to the investment component of GDP, consumers are even more optimistic. Euphoria surged upon Trump’s election and boosted our merriment to finish 2016. It looks like 2017 will be even merrier as the National Retail Federation estimates record spending in their most recent survey after the subdued decade that preceded
This post was published at FinancialSense on 12/22/2017.