Key Takeaways
While the broad economy may be expanding, not all areas of the economy move at the same pace. This was true in the previous expansion from 2009-2020. Although it was the longest economic expansion on record, the economy experienced several 'mini-cycles' during its duration. Similarly, while we remain confident the US economy is not in recession, its growth is unbalanced. For example, weak inventories and net exports have muddied the economic landscape the last two quarters, but the consumer remains in good shape. With today being International Traffic Light Day, we found it fitting to highlight the areas in the current cycle that have ground to a halt 'red light,' exhibit caution 'yellow light' and remain robust 'green light.' While this is our current assessment, we continually monitor the different aspects of the economy because, like a traffic light, they can change very quickly.
Red Light | These are areas of the economy that have slowed over recent quarters.
Yellow Light | These areas are still expanding, but caution is warranted.
Green Light | All systems are a go for these areas of the economy!
** Source: Bloomberg.
All expressions of opinion reflect the judgment of Raymond James & Associates, Inc., and are subject to change. Information has been obtained from sources considered reliable, but we do not guarantee that the material presented is accurate or that it provides a complete description of the securities, markets or developments mentioned. There is no assurance any of the trends mentioned will continue or that any of the forecasts mentioned will occur. Economic and market conditions are subject to change. Investing involves risk including the possible loss of capital. International investing involves additional risks such as currency fluctuations, differing financial accounting standards, and possible political and economic instability. These risks are greater in emerging markets. Companies engaged in business related to a specific sector are subject to fierce competition and their products and services may be subject to rapid obsolescence. Past performance may not be indicative of future results.