Economic Upturn


In the most recent Kiplinger letter, echoed in a recent Financial Overview by Chris Thompson of Wells Fargo, it is recommended to stay calm in spite of the recent stock market gyrations grabbing headlines. The economy remains on solid footing. Expected corporate earnings growth for 2018 is the strongest in eight years, while GDP growth will likely hit 3% for the first time since 2005. The market’s one-year return is still 12.5%. Investors were driven by overblown fears that inflation is poised to jump after Jan. employment data released on Feb. 2 showed a big uptick in wage growth. But these data were highly misleading, caused by cold weather forcing some workers to stay at home. Fewer hours worked artificially lifts the hourly wage calculation. The figure will likely be reversed to a large degree when the Feb. report comes out. Inflation will pick up a bit this year … to 2 .5% or so. But it won’t skyrocket.  This all leads to continued growth in the Real Estate industry.  Brace for it and be prepared.  For more on this, contact us to set up a personal meeting.

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