Economic Halt ✋

Economic Halt

For a country who has seen rapid economic growth in the COVID-19 recovery, the US is starting to see signs of slowdown. Ever since the staggering data that showed US GDP falling by an annual rate of 33 percentage points in the 2nd quarter of 2020, it’s been nothing but up, but in different chunks. COVID scares here and there have caused some minor dents, but to think that the US is back to pre-pandemic levels is impressive.

However, we need to focus on the future, and people are unsure if we can cross the pre-pandemic levels and continue our track. The 3rd quarter results for the US economy were released on Thursday, and GDP rose by an annual rate of 2 percent, which was the smallest gain in the economic recovery. Two things highlighted this, the first one being the Delta variant. Although consumers stayed strong during the major uptick in COVID cases, it still did enough to the US and the globe to dent the economy further. The second one is the supply chain bottlenecks that have plagued the economy in this quarter, which we’ve talked about a lot and how it’s been highlighted on specific industries. Adding on, the things that brought us to this stage in the recovery have been fading. The government is slowly pulling back stimulus, businesses are struggling to find workers, and vaccination rates have essentially flatlined. Fortunately, economists believe that this will all be a short-term problem, and that the economy is set for greater success. Consumer spending and activity is continuing to rise, which is giving real strength in that area of the economy, and it’s possible that this will continue to increase with the holiday season arriving. The only threat is the supply chain problems, with a good chunk of economists believing that it’ll revert to normal by the middle of 2022. Even then, if consumer demand and spending stay strong, it can carry us through the water. What do you think about the economic data?

I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.


More Posts

Taiwan’s Tango 🕺

Taiwan depends more on China for trade than it does on the U.S, China still holds major influence on the state of the Taiwanese econom

Permit 🚘

Self-driving cars have moved from a mere fictional and playful speculation to a reality.

Get your daily Invstr Crunch

Get the market news and updates you need, delivered to your inbox or available on our daily podcast.


Risk Disclosure:

Invstr is not a bank and banking services are provided by Vast Bank, N.A.

Brokerage and Banking services are currently only available to U.S. residents.

Invstr app and web services are provided by Invstr Ltd. Advisory services are provided by Invstr Financial LLC, an investment adviser registered with the Securities Exchange Commission (SEC) details of which can be obtained here. Securities brokerage and custody services are provided by Apex Clearing, a broker dealer registered with the SEC and a member of FINRA and SIPC. There is no bank guarantee on securities and securities may lose value.

Investing involves risk and can lead to losses. Past performance does not guarantee future results.

Vast Bank N.A. a nationally chartered bank and member of the FDIC, provides the banking products, including the products and services related to digital asset accounts. As with any asset, the value of Digital assets can go up or down and there can be a substantial risk that you lose money buying, holding or investing in digital assets. You should carefully consider whether trading or holding Digital assets is suitable for you in light of your financial condition. Any Digital Assets in your digital asset account are not insured by any government entities, including but not limited to FDIC or SIPC.

The Invstr Visa® Debit Card is issued by Vast Bank, N.A. pursuant to a license from Visa U.S.A Inc and may be used everywhere Visa debit cards are accepted. Invstr Ltd, Invstr Financial LLC and Invstr Securities Ltd are subsidiaries of Marketspringpad Holdings (collectively “Invstr”) and Invstr is solely responsible for the application services and website content.

Watchlists provided when users first access the service are not a recommendation to invest. Instead they are provided to help users better navigate the service. Users are free to edit and create their own watchlists. From time to time, Invstr will suggest instruments solely based on an individual’s interest and the interest levels of the Invstr community.The statistical and portfolio builder models generated by Invstr do not reflect actual investment results and are not guarantees of future results.Comments provided by Invstr leaders, influencers or members of the Invstr Community are not recommendations and should not be construed as such.Invstr does not endorse the content or the positions posted by them. Their investment approach, and that of the models provided by Invstr, may be different from yours and may not be appropriate for you.