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:
Thank you very much. Appreciate it.
Brandy Auterson-Hurst:
So as we step into this new year, what insights do you have about the state of the global economy?
David Nelson:
Well, it’s a great question. Right now, I guess one of our favorite and most exciting trends that we’re seeing is the re-acceleration as far as around the globe, some of the key indicators as far as looking at what’s happening. And the chart that I brought along today shows a composite, it’s a leading indicator composite. I’ve spoken about this in the past and what we like about it is it basically combines a whole bunch of these composites together. And what it’s attempting to do is to give us a gauge as far as what’s ahead. We kind of think of it in terms of almost like a lead off hitter as far as in a baseball game. And so again, the tool essentially is trying to tell us as far as what tomorrow’s look like.
What’s interesting is if you look at this thing, what we see is the red dotted line, it’s basically 99 is what it’s representing as far as in the middle there. And when we get close to that 99, that’s becomes a little bit of a scary period of time as far as we may be looking at a recession, something like that. So we got really, really close to it. But now you see as far as in the far right that it’s come up quite a bit from that level, which again, is a pretty good indication as far as from a standpoint of looking at the global economy and the US economy, hopefully good days ahead.
Brandy Auterson-Hurst:
Yeah. So what does this mean for investors?
David Nelson:
Well, we still need to be aware of geopolitical risks that are out there. And inflation fears still kind of are in play here, so I wouldn’t get too ahead of myself. But at the end of the day, the risks seem to be increasing, but not to a level that I think people need to be panicking.
Brandy Auterson-Hurst:
All right, always great advice. Thanks, David.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
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Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.