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  • Writer's pictureBrock Williamson, CFP®

Timely Economic Perspectives

Recently the Wall Street Journal ran with a headline about “Quadruple Threats”1 to the economy. Not to be outdone, on the same day, posted an image highlighting five current threats to the economy. These threats are made to be, and can be, concerning. I break down the threats below to help us maintain proper perspective.

  1. Student Loans. Everyone that got a loan knew they would have to pay it back. Students have been paying back loans for decades. Paying back student loans is nothing new.

  2. Government Shutdown. The threat of a shutdown happens every few years. And the government has shut down 21 times in the past 50 years.2 While frustrating to watch, this is nothing new in our history.

  3. Inflation. This is old news and has improved quite a bit this past year. The inflation concern is nothing new.

  4. Union Strikes. Strikes can happen regularly in a capitalistic economy. They are a negotiation tactic. Dealing with strikes is nothing new to our economy.

  5. Oil. Oil has always been volatile. Sometimes they act as tailwinds and sometimes headwinds to the economy. Nothing new here. As a point of interest, the average price was $3.88/gallon in Sept 2023, but that is far from the highest. In June 2008 it was $5.71/gallon (in today’s dollars) - almost 50% higher.3

As investors we are bombarded with the concerns du jour. It’s important that we calibrate our perspectives to look at the big picture. And that’s what I am here for. If you have concerns, let’s talk to ensure all relevant information is being considered.

© The Behavioral Finance Network

1. Wall Street Journal, Sept 25, 2023.

3. Energy Information Administration


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