8 Jul 2022
Real GDP Growth USA
- Posted by Dejan Pekic BCom DipFP CFP GAICD, Senior Financial Planner
If you ignore the impact of the COVID-19 Pandemic on GDP (first crashing due to supply shortages and then booming due to government money printing) a trend emerges.
The rate of real GDP growth has slowed over the past decade compared to the 1970’s.
Deflation is when asset prices decrease over time and purchasing power increases which still remains the likely economic outcome over the next 10 years given the World has in excess of US$300 trillion in debt, an aging population and rapid technological automation.
When will the current period of inflation end?
Depends on when supply of goods is again free flowing and the war in Ukraine ends.
Right now, key is to remain invested according to your appetite for volatility and continue to buy more quality assets at discounted prices.
If you have family, friends or colleagues that want financial advice please ask them to contact us and we will work out how best to help.
At Newealth we are always looking to support and promote our clients wherever possible and if you have any ideas or comments, please feel free to email me or to call me on +61 2 9267 2322.