GDP

On Friday the second quarter GDP number came out at 4.1%, which is extremely high. A lot of people don’t realize that this number represents the total growth of the U.S. economy, net of inflation. If you assume the inflation back in, it actually grew at 7.4%. This is a phenomenal number considering the size of our economy.

Housing

Earnings and GDP came in very good last week. However, we have two items that we think are a bit concerning and need to keep an eye on. The first is housing. Housing sales slipped for the third month in a row. These sales now represent a five month low. We are starting to see the impact of higher interest rates. In addition, the low supply is creating higher prices.

Consumer Debt Delinquencies

The second item we find a bit concerning is credit card and car loan delinquencies. For the past seven years, consumer debt delinquencies have steadily declined, but, have ticked back up the past few months. This is an area we need to watch closely because it was a factor in leading to the 2008 financial crisis.

 

Greg Powell, CIMA®
President and CEO
Wealth Consultant
Email Greg Powell here

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

No strategy can ensure success or protect against a loss.
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#291 Tariffs and the Global Economy #289 Strong Earnings vs. Strong Talk