08 December 2023

Capitalizing on the Wild Disconnect Between the Perception of the Economy and Economic Reality

It is one thing to think that the economy might get better and have controversy around that FORECAST. I'm trying to remember when the economy has been this great and there is controversy around that FACT.

Continuously compounded annual rate of inflation was under 1% last moth. (The median this century has been 2.2%).

The unemployment rate is 3.7%. The median rate for this 21st century is 5.3% and the unemployment rate has been higher 97% of the time in the last half century. This is - per the Council of Economic Advisers - "the 22nd straight month below 4%, a more-than-50-year record."

Some people are angry about the fact that so many think this is the worst of times when all the data supports claims that the economy is actually great. To me that kind of wild disconnect between reality and perception suggests investment opportunities. You can argue with people who deny reality or just buy discounted assets from them.


No comments: