on October 23, 2018
In the northern U.S., it’s getting cold. We’ve officially left the time of shorts and t-shirts behind us and have moved on to wool sweaters and boots. Not everything is frigid, though! The economy continues to sizzle along and is doing much better than many news outlets would have you believe.
Don’t be spoofed by pessimistic headlines and talks about economic woes and the collapse of the stock market. The truth is, the U.S. economy is doing great right now and we should continue to remain confident—not cautious—about its future. What’s going well? Here are four things:
Unemployment rate:
As of September, 2018, the unemployment rate is 3.7%. That’s spectacular! Sure, the number is a tad optimistic because it does not include people who have given up looking for work (for any number of reasons), but it’s still an excellent figure. The only trouble is, the jobs that are open do not necessarily match the expertise of the job seekers. The trades, for instance, are desperate for workers, but fewer people are attending trade schools than in the past.
Stock Market:
On October 3rd of this year, the stock market hit a record high…following a record set just ONE day earlier. That’s pretty incredible, considering the many doom-and-gloom articles that would have you believe the market is going to crash and burn tomorrow! Though there’s also some risk associated with investing in the stock market, if you spread your investments across several different companies and industries, chances are you’ll do just fine. As a financial advisor, I have a lot of faith in the market’s continuing success.
Real Estate:
Right now, the housing market is thriving. Yes, real estate experiences regular ups and downs, but right now we’re enjoying an incredibly robust “up.” According to Dave Ramsey’s real estate blog, in March of this year, homes sold at least “a whole week faster than last year in 36% of the largest housing markets in the country—averaging 63 days on the market.”
Ramsey also optimistically states that most housing markets are at low risk for a downturn and home equity will likely keep increasing by 2%-6% until at least 2020. For now, the housing market is comfortably booming.
Corporations:
People love to hate corporations, but the truth is, they are major employers. We rely on our McDonalds and Amazons to employ people from all backgrounds, from delivery truck drivers to cashiers to advertisers and marketers.
Perhaps due to the revised tax plan, U.S. corporations have been giving back this year in a big way. Just a few weeks ago, Amazon raised its minimum wage to $15/hour—almost double the federal minimum wage. At the beginning of the year, Walmart invested in a fleet of electric semi-trucks, engineered by Tesla, in order to reduce their greenhouse gas emissions. Not every corporation gives back when they have a surplus, but at least some do.
Cheer up! We have a lot to celebrate right now, economy-wise. If you pay attention to recent trends in real estate, the stock market, jobs, and corporations, you’ll find a lot of reasons to stay optimistic about the economic state of our nation. Don’t let others’ pessimism drown out all the good news!