Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back David.
David Nelson:
Thanks Brandy.
Brandy Auterson-Hurst:
So there’s been a lot of focus lately on what the data is saying about inflation and the economy. What are you seeing on this front?
David Nelson:
Well, yeah, a lot of attention on the economic data, especially inflation and growth. I brought along a chart today and it lets us look at both side by side and again, we try to color code this, make it as simple as we possibly can. The blue line on the top is looking at the surprise index from Bloomberg, which tells us as far as from a report’s perspective, as far as how we’re coming, as far as on inflation. The red line is looking at growth surprises and what that is looking at again, is that the downside. Are we seeing consistent growth? Are we seeing things back off a little bit?
And as you can tell on both of these, it’s backed off considerably. Inflation, the top line pretty good. As far as the bottom, we want to see growth sustained and certainly we’ve seen it pitter way here as far as in recent times. But the real question now is whether inflation can keep easing and still see that the growth doesn’t roll over any more than it already has. That’s the real test at this point.
Brandy Auterson-Hurst:
Okay. So what should investors be watching from here?
David Nelson:
Well, the most constructive outcome again, and we’re looking for is that inflation is basically staying at its current level or lower and growth we’re looking for that to maintain its current status, both of which are kind of big question marks at this point in time. We’ll have to see as far as with the tariffs and as far as what’s taken place in Washington on the budgets, but we’re hopeful as far as looking forward.
Brandy Auterson-Hurst:
All right, David, as always, thanks for joining us.
David Nelson:
Thank you.