Home » Prediction Number 9: US GDP Grows at 3% in 2020

Prediction #9 - The US economy will rebound in 2020, growing at a 3% rate after the 2019 recession never materialized.

Prediction Number 9: US GDP Grows at 3% in 2020

Subscribe to The Free Market Chronicle and join the 2,750 subscribers getting it for FREE!

2019 is coming a close, and now as we turn towards next year, I present to you a list of 10 stock market predictions for 2020. You can review my list of top 10 predictions for previous years 201620172018, and 2019 to see how I did. 

As I did last year, I will start with number 10 and work our way up to number 1 over the final month of 2019. Enjoy!

Prediction Number 9: US GDP Will Grow At 3%

With global growth returning and the importance of the US/China trade war diminishing, businesses will begin to start reinvesting in CAPEX, and that will cause the US economy to surge from its 2% growth rate in 2019.

Overblown Recession Fear Meltaway

Fears of a recession and uncertainty around trade caused businesses to cut back or delay essential investment decisions in 2019. But the recession never materialized. Despite their best efforts, cries from the mainstream media, and the herd-like mentality among investors, the consumer never bought into the hype and as a result, never stopped spending.

US/China Significance Dimisinishes

Meanwhile, the number of goods imported from China is declining at a rapid pace, and that means the importance of the trade war will gradual disappear throughout 2020. This will give businesses the confidence to spend more and allow the economy to come back online and result in the US GDP to grow at 3% or more in 2020.

china imports

(Data from St. Louis Federal Reserve)

It could not come at a better time for President Trump, who needs to run his reelection campaign on the strength of the economic and the lowest unemployment rate in half a century.

Hope you enjoyed prediction #9


Mott Capital Management, LLC is a registered investment adviser. Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Upon request, the advisor will provide a list of all recommendations made during the past twelve months. Past performance is not indicative of future results.