The Coming Economic Boom Will Be Just a Mirage
Forecasts of 6% to 8% growth in real gross domestic product this year are common, but where will it come from?
Business is expected to boon this year as vaccinations spread.
Photographer: Spencer Platt/Getty Images
One of the primary rules of investing is don’t get carried away by the madness of crowds. Still, markets are signaling that many investors are ignoring that rule.
Asset prices suggest that many believe most everyone will be vaccinated against Covid-19 by mid-year, or at least herd immunity will be achieved by then. So homebound-weary consumers will burst forth and spend the 11.4% jump in personal income they received from the December federal stimulus bill, to say nothing of their chunk of the $1.9 trillion relief and stimulus package.