Question

Evaluate the health of the current U.S. economy by its GDP, business cycle, and economic growth.

Answer 1

When the Great Depression struck, many people who refused to understand the state of the economic cycle were not getting out of the stock market. Making it worse, they are fearful at the beginning of an growth period to get back into the stock market. It is the best time to do that. Even though you can not perfectly time the market, you can boost your returns by reading the business cycle better. You can then change your asset distribution to benefit from the stages.

Since the last recession in June 2009 the U.S. economy has been in the growth phase of the economic cycle. That's over 10 years. Phases of expansion typically last five years, or so. As a result, many people are alert that a recession is just around the corner. But inflation rates have not been alarming, which is the warning sign that growth is near its height. Instead of inflation, asset bubbles do exist. This was in the US dollar in 2015. The weak demand for the euro contributed to a strong dollar. Housing markets faced an asset bubble right before the 2008 recession. Often the excessive exuberance of a high arises at asset prices without generating overall inflation

The number of employees seeking unemployment insurance exceeded 10 per cent in 2009, but as of 2018 it dropped to less than 4 per cent n general, rising unemployment levels are often seen as an sign of economic trouble, and declining unemployment rates can be seen as the opposite. As for all possible indicators, however, look beyond the surface. The unemployment rate, for example, reflects only those people who already work or are seeking jobs. Those not working by default are not counted