Is the economic forecast impacted by the weather? If you live here in Birmingham, AL or several other southern cities, the weather has definitely impacted your life recently. Since then many of our clients have been asking how this snow storm would affect the economy. Here is what our research and experience tells us.
How an economic forecast can be affected by the weather
Across the country different states have been hit by severe weather. When this happens, the current economic forecast has to be adjusted. Housing start-ups are postponed, job employment is slower, retail sales are slower and it goes on and on. Good old Mother Nature can sure shut down an economic forecast.
The weather’s positive impact on an economic forecast
In bad weather there are wrecked cars and people caught unable to get to their homes. This will have an positive impact on the automotive industry as well has the hospitality industry.
How we create an economic forecast
When we look at all the research and analysis and make an economic forecast, we always keep in mind that it could change dramatically with the weather and other unpredictable factors. That’s one reason we have a Portfolio Strategies Team that works together to monitor the markets and economy. This means there is more than one person guiding our clients’ portfolios through economic turmoil.
Mother Nature can alter an economic forecast
We know this and respect Mother Nature. She is a viable force and can drastically impact any economic forecast. Constant market analysis is key to knowing how an economic forecast needs to change and stay relevant. This is what we do for our clients.
Greg Powell, CIMA
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Greg Powell is President and CEO of Fi Plan Partners, an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management , economic forecast research, and business consulting.
Find out more at https://fiplanpartners.com.