Volatile Stock Market: Often a leadingindicator of future economic direction, the stock market has beenwheezing lately even with all the corporate tax rate reduction helpfrom last year and highly favorable regulatory environment. It'snot just incremental interest rate increases, which are still wellbelow averages. China fights back on the trade/tariff front andEurope looks shaky—Merkel's days are numbered, France lurchesthrough political chaos, Italy teeters, and a hard Brexit seemspossible. Add in all the turmoil in the White House, notto mention looming high stakes political war with Congress. Allthis friction won't help the global economy or the U.S.
Debt Doesn't Matter? Typically, at economicpeaks, budget deficits should be in decline or governments arerealizing surpluses for rainy day funds. But not today in the U.S.Again, we have another lesson in bogus supply-side economics—asdeficits balloon from tax cuts and the annual national debt servicenow costs taxpayers more than what we pay for in ourdefense. What happened to the Tea Party sentiment or aretax cuts all that matter? And what happens in the next recession,when there is no budget cushion? Answer: An ever-bigger deficit andmore debt, which will constrain government programs and forcespending cuts, and make dealing with a recession that much morepainful and difficult.
Empty Retail Space: Unemployment is near recordlows, wages are rising finally, consumer confidence is up, and morethan a few store fronts are still empty along Main Streets, HighStreets and in many malls and strip centers even with mostdevelopment a non starter for years. Okay, we know aboute-commerce's impact. But what happens when the next economicdownturn occurs? Then we'll see what empty really means. And youwant to own retail real estate? Keep only the best.
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