Newspaper headlines reading better days ahead
The Conference Board’s Leading Economic Index (LEI) rose in October by 0.9% for its ninth consecutive gain. The consensus was for a gain of 0.6%. Eight out of ten components posted improvements with all components strengthening over the last six months. These figures suggest further upside momentum to growth and are consistent with above-trend growth. U.S. growth continues to modestly improve while growth in the rest of the world modestly decelerates. In the end, I think fears of deflation unwarranted – especially in the US! Central banks are still on track to provide substantial amounts of liquidity in 2015. The question is where all that money will end up…
Written by Nate White, Chief Investment Officer of Paragon Wealth Management
Paragon Wealth Management is a provider of managed portfolios for individuals and institutions. Although the information included in this report has been obtained from sources Paragon believes to be reliable, we do not guarantee its accuracy. All opinions and estimates included in this report constitute the judgment as of the dates indicated and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Past performance is not a guarantee of future results.
Written by Nathan White, Paragon Chief Investment Officer
photo by agilitynut
There is currently a lot of talk about what the implications will be for all of the government involvement in the economy. To help put things into perspective I thought it would be good to take a look at the current condition of the country’s finances. I am not a doom and gloomer, but I think it is always helpful to know the facts in order to put things into perspective.
- $56.4 Trillion – Current Liabilities and Unfunded Promises of the Unites States Government
This equates to $483,000 for every American household!
- $11 Trillion – Current National Debt
50% held by foreign countries and the other half held by the public
- $1.7 Trillion – Projected 2009 Budget Deficit
The largest as a share of GDP since World War II
In order to service all of these liabilities the government will have to take more from the private sector which means slower economic growth than there otherwise would have been.
It does not mean that we wont grow (which is why I’m not a doom and gloomer!) but just that the growth will come at a slower pace on average.