The turbulence in the stock market during the last month of the year has led many to forget that the overall state of the economy was positive in 2018, as it performed well by most measures, including year-over-year growth and a strong labor market. But this turbulence should not be surprising to those who saw the underlying indicators and false stimulants.
As we begin 2019, the U.S. economy is facing a challenging road ahead. In spite of all these positive growth numbers, the U.S. economy has been overstimulated due to last year’s tax reform, which might’ve provided some false signals and reflected in recent turbulence in the stock market.
The good news is that 2019 appears to still be on a path for growth despite the current uncertainty in the market.