Economy Growing, Regulations Shrinking

Jobs Number Shows Economy Growing

Last week, we had a great jobs number which was good to see as the week before we saw a weak GDP number. The services sector, in particular, which makes up 80% of our GDP, was a strong number. 

This jobs number is even more important than most because of the very weak GDP and jobs number we had in the first quarter. This is the first look as to how things are going with the economy and what we can expect in the second quarter, especially from a business standpoint. You have more people hiring and more people moving from part time to full time. And then, at the end of this week, the second most important data point will be released, retail sales which comes out on Friday.  

Last week we saw that businesses were hiring. So was the poor GDP we saw in the first quarter an anomaly?  Based on what businesses are doing, it seems as if it was a one off quarter.  With the retail number on Friday, we will see if, now that people are getting jobs, they are spending money.

Dodd Frank Regulations Shrinking

Washington, D.C. was also very busy last week. Of course, we saw the high profile issue of health care but, as well, the House voted to roll back a good bit of Dodd Frank.  Remember, Dodd Frank is the set of regulations that came out after the financial crisis and which focused primarily on banks.  If we get Dodd Frank rolled back we get a direct and indirect impact on jobs.  Direct because if banks don’t have to keep as much capital on their books they can hire more people.  Indirect, as well, because if they don’t have to keep as much capital, they can loan out more to owner managed businesses. It would be a great economic push both ways if we could get this rolled back. We will be watching to see what happens as lower regulation means a better business environment.

 

Bobby Norman, CFP®, AIF® Senior Vice President Wealth Consultant Email Bobby Norman here

Ashley Page, JD, MBA Senior Vice President Wealth Consultant Email Ashley Page here

Trey Booth, CFA®, AIF® Senior Vice President Wealth Consultant Email Trey Booth here

Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Economic forecasts set forth in this presentation may not develop as predicted.

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Summary
Title
Economy Growing, Regulation Shrinking
#220 Earnings Up, Growth Accelerating #218 Corporate Confidence, Cautious Consumers