by Angeline Richards, Ascend Staffing
Topic: The Financial Lesson You Didn’t Know You Needed from Allyn Shaw
We were graced with Mr. Allyn Shaw to present to us the State of Markets. This was my second time actually getting to sit though one of Mr. Shaw’s presentations and I was of course no less impressed and left more informed than I was the first time.
As we all know there is so much going on with Economy right now- you can’t really predict what’s to come but you can take a more educated look at it especially with the updated information provided by Allyn.
Some takeaways:
- It’s foreseeable that we might be looking at AI to bring in a lot of revenue and investment opportunities here in the future.
- Tariffs everywhere have a direct impact on GDP (Gross Domestic Product) – which is the total value of all goods and services produced within a country’s borders during a specific period which serves as a key measure of a countries economic output.
- GDP is likely to go down into the 1’s in the somewhat near future (and YIKES we aren’t looking forward to that!)
- How this drop in GDP affects people will vary dependent on many factors; some businesses will be hit hard, and some will be just fine. There is no one result good or bad of a decrease in GDP.
- Example:
- Cause: an increase in international tariff that causes an overall decrease in US GDP.
- Effect: a company has increased demand/business for a product they provide because the cost to obtain it overseas for buyers is now too high, so they buy local.
- The Stocks & Bond Market Economy should do well still, but things can change quickly with our economy at any given time at any given curveball. Our bonds have been looking pretty good the past 5-6 years running so that’s kind of a base of what to hope to continue.
- An investment tip – gold can’t grow value more than inflation hence why most people opt to hedge investments vs putting their money towards things like “Gold”
- The Canadian and Mexican Tariffs are more than likely just a temporary thing – with all the changes happening with our change in presidency.
- Tariffs are really more of a bargaining chip vs a real economic guru (give me what I want, and we will work it out) in most cases.
Moral of the story – always prepare for a bumpy ride along the rollercoaster we call our economy and buckle up as we are optimistic the bumps that do occur won’t last too long (fingers crossed).