Headwinds show signs of abating
To sum up, the recovery has been held back by three major headwinds, all of which are reversing:
Government spending is no longer declining and is quite likely to grow faster.
Unfavorable wage growth and demographic factors, which account for almost half of private-sector economic growth, are moving in positive directions and are likely to keep doing so.
Based on this analysis, the outlook seems promising for overall economic growth. Although we’re not likely to see an immediate or substantial turnaround, the slow improvement is much more likely to continue, and even accelerate, than it is to stall.
Brad McMillan is the chief investment officer at Commonwealth Financial Network, the nation’s largest privately held independent broker/dealer-RIA. He is the primary spokesperson for Commonwealth’s investment divisions. This post originally appeared on The Independent Market Observer, a daily blog authored by McMillan.