Allow me to offer a quick analysis in charts. First, real\ndisposable incomes (adjusted for inflation) are close to $16 trillion in the\nU.S., which has been driven higher by direct transfers from the federal\ngovernment through stimulus programs but also via higher wages. There have been\nmany reports of labor shortages in the U.S., but it is also true that many\nworkers are finding they can easily switch jobs for higher wages. Desperate to\nfill positions, many employers have been raising wages as a result. According\nto the Labor Department, private-sector hourly wages were up 4.6%\nyear-over-year in September.<\/p>\n\n\n\n
____________________________________________________________________________<\/p>\n\n\n\n
How Long Can High Demand Last?<\/a><\/strong><\/p>\n\n\n\n While high demand may mean the economy is currently in a\nstrong position, it is still important to prepare for the long-term and for\ntimes when this may not be the case. To help you do this, I recommend focusing\non key economic indicators and hard data that can positively impact your\nfinancial goals in the future.<\/p>\n\n\n\n I am\noffering all readers our just-released Stock Market Outlook report. This report\ncontains some of our key forecasts to consider such as: <\/p>\n\n\n\n If you have $500,000 or more to invest and want to learn more about these forecasts, click on the link below to get your free report today!\u00a0 ____________________________________________________________________________<\/p>\n\n\n\n Real Disposable\nPersonal Income<\/strong><\/p>\n\n\n\n These higher wages, combined with accumulated savings, a\nrising stock market, and the strongest housing market in over a decade have\nalso given way to record household net worth in the U.S.:<\/p>\n\n\n\n Household Net Worth<\/strong><\/p>\n\n\n\n Put these fundamentals all together, and you have a situation\nwhere the U.S. economy has what I would call a good problem: too much demand. <\/em><\/em><\/p>\n\n\n\n In my view, the biggest driver behind snarled supply chains and\nshortages of goods and services is not policy failures or systemic economic\nissues \u2013 it\u2019s that the U.S. and global economy simply do not have the current\ncapacity to meet this wall of demand. And that\u2019s a good problem.<\/p>\n\n\n\n Consumers are showing few signs of slowing down. According to\nthe Commerce Department, inflation-adjusted retail spending has soared by 14%\nin the last two years, which is a bigger increase than the previous seven years\ncombined. Retail sales rose 13.9% in September from a year earlier, and sales\nat retail stores, restaurants, and online sellers were up nearly 1% month-over-month.\nThe momentum favors even more spending \u2013 in the first week of October, retail\nspending was up 8.8% compared to the average week in September. <\/p>\n\n\n\n U.S. Consumption\nExpenditures: Still at or Near All-Time Highs<\/strong><\/p>\n\n\n\n To be fair, the \u2018good problem\u2019 of too much demand does not automatically\nhave a happy ending. Persistent supply chain issues could continue to drive\nprices higher, which could discourage spending and result in declining consumer\nsentiment for future quarters. The economic calculus is in determining which\nmight happen first: inflation drives consumers away, or corporations and the\nglobal economy expand capacity and ultimately catch up to demand. In my view,\nit\u2019s the latter. <\/p>\n\n\n\n Bottom Line for\nInvestors<\/strong><\/p>\n\n\n\n The U.S. consumer is in a historically strong position, and\nI would argue the current cash glut in the U.S. economy is a key determinant in\nsupply chain issues. Simply stated, there is so much demand that supply can\u2019t\nkeep up. <\/p>\n\n\n\n In my view, this is a good problem. U.S. consumers\u2019\nfinancial position is not likely to change significantly in the next six months\nor so \u2013 if anything, it could get even better as more enter the workforce and\nwages continue to move higher. Meanwhile, corporations and supply chains are likely\nto find ways to catch up relatively soon, which should give way to sustained\nlevels of higher spending. A good problem, with a good outcome. <\/p>\n\n\n\n Even\nwith this positive outlook, it\u2019s still important to prepare your assets for\ntimes when the market may not have such a good problem. We encourage investors\nto focus more on key data points and economic indicators that positively impact\ntheir long-term investments. To help you do this, I am offering all readers our\njust-released Stock Market Outlook report. This report contains some of our key\nforecasts to consider such as: <\/p>\n\n\n\n If you have $500,000 or more to invest and want to learn more about these forecasts, click on the link below to get your free report today! The rise in consumer disposable income and household net worth is driving snarled supply chains and shortages <\/p>\n","protected":false},"author":3,"featured_media":8874,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[63,71],"tags":[],"class_list":["post-9943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mitch-on-the-markets","category-private-client-group"],"acf":[],"_links":{"self":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/comments?post=9943"}],"version-history":[{"count":1,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9943\/revisions"}],"predecessor-version":[{"id":10276,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/posts\/9943\/revisions\/10276"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/media?parent=9943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/categories?post=9943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/zacksim.com\/blog\/wp-json\/wp\/v2\/tags?post=9943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
IT\u2019S FREE.\u00a0Download the Just-Released November 2021 Stock Market Outlook<\/a>2<\/a><\/sup><\/strong><\/p>\n\n\n\n![\"\"](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2022\/02\/pic1.png\")
![\"\"](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2022\/02\/pic2.png\")
![\"\"](\"https:\/\/zacksim.com\/blog\/wp-content\/uploads\/2022\/02\/pic3.png\")
<\/p>\n","protected":false},"excerpt":{"rendered":"