Article originally posted on Globe St. on January 14, 2019
Good and stable is better than fast growth, as it is sustainable for the longer term.
There was no way the torrid rate of growth in corporate earnings will continue this year. The effects of the tax cuts and deregulation had a huge impact for the positive in 2018, but now it is a new year with new problems. That said, for all the talk of a recession in 2019, the US economy is still growing very nicely and will continue to do so unless unforeseen circumstances interfere. It is likely that GDP will still post 2.5% to 3% growth, at least for the first half of 2019, and possibly into 2020.