Scott Kahan: How do you say the R-Word?
The economic news this year has been dominated by the back and forth of the China trade war, debate about Federal Reserve interest rate policies, and questions about a new recession. For the average investor it has been dizzying. We sat down with Certified Financial Planner and President of Chappaqua’s Financial Asset Management Corp., Scott Kahan to sort it all out. Here’s what he had to say:
How do you say the R-word?
Talk of recession is obviously on the rise. And there’s two things to remember about recessions. One is that they are inevitable. The other is that they’re impossible to predict.
Let’s try to focus on the state of the economy. We continue to be in a slow growth environment, as we have been for ten years. We had a couple of years of faster growth due to the sugar high of the Trump tax cuts. And now it’s back to 2%.
What about jobs?
Employment numbers remain strong. The jobs market is continuing to grow though the growth is slowing. The next leg to look at is manufacturing and home sales which will go down as the jobs market decelerates. On the other hand, consumer spending has been strong due to wage gains. So, it’s red-light, green light. Which gets us back to 2%.
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