The U.S. Economy Does Not Have a Demand Problem

Some observers seem to be able to detect signs of a slowing in U.S. economic growth, even though in reality, companies cannot produce enough to meet customer orders.  U.S. industry is dealing with near record raw material lead times, fluctuating commodity prices, with an upward bias, transportation bottlenecks and worker shortages.  No wonder economic activity, in the short run, is not a strong as some would like.

We have a supply problem, aggravated by “excessive” stimulus.

A cautionary note for investors, a strong economy does not always equate to market performance, at least over the short term.

All comments and suggestions are welcome.

Walter J. Kirchberger, CFA®