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An Economic Boom Is Coming But Not All Stocks Will Profit | The Mesh Report

An Economic Boom Is Coming But Not All Stocks Will Profit

Dividend Sensei January 22, 2021 Comments Off on An Economic Boom Is Coming But Not All Stocks Will Profit

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.

Continue Reading at Dividend Sensei



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