The Next Level of Play in the Financial Markets

Raymond James CIO Larry Adam reminds investors they need to be well prepared and ready for any challenges that may come their way.

To read the full article, see the Investment Strategy Quarterly publication linked below.

With technology changing the way we live, we are taking a trip down memory lane to look back at a piece of technology that has entertained generations: classic video games. Why? Because whether you are in a fictional gaming world or the real-life investment world, you need to be well prepared and ready for any challenges that come your way. We have these two worlds collide as we get set for the next level of play in the financial markets. Let’s hit the start button and go.

The U.S. economy has eluded obstacles and defied recessionary predictions like players in Frogger dodging cars and alligators to arrive safely home. Our economist believes that while the economy will slow meaningfully from its recent leaping pace, recessionary concerns are fading. Yes, consumer spending is likely to be challenged by rising credit card balances, falling savings rates, and less robust employment growth, but record household net worth will keep spending from collapsing. In addition, healthy government-induced corporate investments through the CHIPS and Science Act, Inflation Reduction Act, and Bipartisan Infrastructure Law are likely to offset any consumer weakness. As a result, rather than the mildest recession of all time, we slightly tilt our forecast to the softest of soft landings, pushing our GDP forecast from 1.7% to 2.1% for 2024.