After epic rallies in 2019 and 2020, the market is taking a breather so far in 2021.
Of course, not all stocks are performing equally well or poorly.
- S&P 500 is barely up for the year
- Nasdaq is down for the year
- Enbridge (ENB), a Canadian dividend aristocrat pipeline giant is up like a rocket, 10% in two weeks
Moody’s, one of the 16 most accurate economists in the World according to MarketWatch, has just put out its latest base-case economic forecast.
- which has important implications for your portfolio
- because while the greatest economic boom in 35 years is possibly coming
- not all stocks will benefit equally
Why Moody’s Expects Two Years of BlockBuster Growth
Moody’s points out that the US is now on track to potentially deliver a fiscal stimulus of almost 25% of GDP, the highest in the world.
With this additional boost, real GDP should be robust at just over 5% this year and the same next, bringing the economy back to full employment by early 2023.” – Moody’s (Emphasis added)
Moody’s expects inflation-adjusted GDP growth of more than 10% in the next two years.
- the best GDP growth in 35 years
Moody’s is now forecasting a $1.2 trillion net infrastructure bill.