Wealth managers debate whether the scourge of stagflation, last seriously felt in the 1970s, will soon hit the American economy.
by Gregg Greenberg
Investment News
Recession fears are growing as stocks sink, GDP stagnates and confidence collapses. Meanwhile, inflation worries are rising as consumer prices remain elevated, Treasury yields drift higher and gold shines.
Time to dig out the bell bottoms from the attic and get ready for a return to 70s style stagflation?
Maybe, maybe not, according to advisors. Either way, their Churchillian strategy generally stays the same: Keep calm and carry on.
To quickly recap, on the stagnation front, the U.S. economy rose 2.4 percent the final three months of 2024, decelerating from a 3.1 percent pace in the 3rd quarter. Gross domestic product (GDP) for the full year 2024 grew 2.8 percent, down slightly from 2.9 percent in 2023. The next GDP report, the advance estimate for Q1 2025, is scheduled to be released on April 30.