State of the US Economy

In this episode, Corey Janoff and Rachelle Vanderzanden walk through some key economic indicators of the US Economy in early 2024.  The media would have us believe things are going very poorly, but how do we interpret the data?

US Economic Indicators:

• Inflation is the biggest issue people mention, but has decreased substantially to 3.4% year over year in April of 2024.
  • When adjusting for wage increases, people are generally not paying more as a percentage of their income in 2023 for goods and services than they did in 2019.
• Unemployment is currently going on 27 months of a lower than 4% unemployment rate. Which is more than a 50-year record!
• Housing is challenging. Prices remain high and interest rates are high, which means prospective new home buyers will pay much more for a home each month than they would have a couple of years ago.
• Many things cost less today as a percentage of income than they have in the past.
  • In the 1950s many people spent more than 20% of their income on food. Today the average is under 10%.

 

There are many different things that make up the “economy”.  It is always nuanced, but keep in mind that the media has a vested interest in keeping your attention.  Doom and gloom grabs a larger audience than feel good stories.  Be aware of what’s happening in the world, but focus on what you can control.  Chances are, a lot of you are doing pretty well!

For more financial planning tips from Corey and Rachelle, find them on social media!
LinkedIn: @CoreyJanoff and @RachelleVanderzanden; Instagram: @CoreyJanoff and @VanderzandenRachelle; and Twitter: @CoreyJanoffCFP and @RachelleFinance 

Discussions in this show should not be construed as specific recommendations or investment advice. Always consult with your investment professional before making important investment decisions. Securities offered through Registered Representatives of Cambridge Investment Research, Inc., a broker-dealer, member FINRA/SIPC. Advisory services offered through Cambridge Investment Research Advisors, Inc., a Registered Investment Adviser. Finity Group, LLC and Cambridge are not affiliated. Cambridge does not offer tax or legal advice.