Charts: The state of the economy …

Couple of charts from Fidelity that depict the state of the economy on the head of a pin.

Well, make that two pins…

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U.S. Economic Indicators Scorecard

On the vertical axis is the current state of the variable … good or bad.

For example, “Corporate” – think corporate earnings – is relatively high.

Employment is relatively low – think, 7.95 unemployment.

click to enlarge
image

On the horizontal axis is the trend of the variable – getting better or getting worse.

For example, housing is low, but the trajectory is good..

Capital expenditures are fair to midling … with a weak trend.

Overall, Fidelity’s view is fairly good.

Draw your own conclusions … for the individual variables and the gestalt.

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Position in the Business Cycle

Another Fidelity chart depicts a typical business cycle in stages – recovery, expansion, and contraction … and plots their view of where the U.S. economy is now.

Their POV may surprise you …

In a nutshell, Fidelity says: “The U.S. economy is still in a slow mid-cycle expansion, despite some recent evidence of late-cycle dynamics.”

In other words, systemic risk has moderated, but this may be the best we’ll see.

Ouch.

Still, Fidelity says to buy stocks … and provides their 800 number.

Hmmm.

click to enlarge
image

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