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The US Economy’s Surprising Resilience

August 18, 2023

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Recent buzz suggests that the US economy might be taking an unexpected turn. In spite of earlier concerns about an impending recession, the winds of change now blow in the direction of economic acceleration displaying a tremendous amount of resilience from the economy.

Recent metrics paint a promising picture:

Data on Resilience: Entering Q3, the US economy is a lot more robust than pretty much everyone anticipated.

Rising GDP Forecasts: Preliminary estimates from Wall Street analysts suggest an economic upturn. The Atlanta Fed even predicts an impressive third-quarter GDP growth of 5.8%, causing quite a stir among economists.

Digital rendering of a dollar sheet, card, and coins. Resilience

The US surprises everyone by continuing to rally. Photo by crazy motions.

A Pinch of Skepticism: While these figures are intriguing, it’s still wise to approach them with caution. With all the best will in the world, nobody knows what the economy is going to do.

Like a weather forecast, economic predictions can change with each new data point. The Conference Board predicts that: “real GDP growth will slow to 1.9 percent in 2023, and then fall to 0.5 percent in 2024.”

But, as Patrick Higgins, an Atlanta Fed economist, put it in an interview with Axios: it’s also a lot easier to predict what tomorrow’s economy is going to be like, compared to what the economy in 3 months, or next year, is going to be like.

Wall Street Adjusts: Strong data has prompted some significant players, like Goldman Sachs, to adjust their expectations. They now predict a growth rate of 2.2%, a big leap from their previous 1.5%.

Here’s the twist: an economic surge might not align with the Federal Reserve’s objectives. They’ve been raising interest rates to temper the economy and counter inflation. But now, the positive data is cushioned by a decrease in inflationary pressures. We guess they underestimated the resilience of the economy.

A stopwatch against a pink and blue background. Resilience
Economic ups and downs are a matter of when not if. Photo by crazy motions.

Resilience For Alternative Asset Investors

What does this mean for alternative asset investors? First, it underscores the ongoing unpredictability of markets. But more crucially, it reinforces the value of diversification. We say this a lot, but we really mean it.

In this climate, where conventional wisdom is continuously challenged, Supervest is playing a pivotal role. Our expertise and unique investment avenues ensure that you can navigate the complexities of the modern economy with confidence and foresight. MCAs can offer stability and potentially lucrative returns, regardless of broader economic oscillations.

To summarize then, while the current economic momentum seems promising, the journey ahead will of course harbor challenges. It’s more about when than if. As we gear up for these inevitable shifts, leaning on seasoned industry leaders and diversifying portfolios remains as important as ever.

Ready to diversify and elevate your returns? Explore our MCA offerings now.

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