fbpx
QQQ
-0.30
342.56
-0.09%
DIA
-1.59
345.00
-0.46%
SPY
-1.31
425.79
-0.31%
TLT
+ 0.50
140.55
+ 0.35%
GLD
+ 0.11
173.95
+ 0.06%

This Recovery's GDP Bounce-Back Is Much Lower Than In 1982 And 1933

by
March 7, 2016 1:15 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

The U.S. is now more than six years removed from the worst of the economic recession that followed the Financial Crisis in 2008-2009. The Federal Reserve finally deemed the economy strong enough for its first modest interest rate hike back In December. However, global economic jitters, particularly in China, have now clouded the outlook for future rate hikes.

Is there any real reason to doubt the strength of the U.S. economic recovery? As it turns out, there is.

According to data from the St. Louis Fed, post-downturn GDP growth this cycle has significantly lagged the recoveries seen following the Great Depression and the economic downturn in the early 1980s. The Federal Reserve may have finally met its targets for a rate hike in terms of metrics like unemployment rate, but the graph below illustrates just how lackluster the U.S. economic recovery has been up to this point.

Related Link: MIT Researchers: Here's Where To Look For The Next Amazon Or Facebook

“As the graph clearly shows, GDP bounced back with gusto after the Great Depression and also ramped up moderately after the early 80’s recession,” the Fed wrote on its blog.

GDP growth would have to undergo quite a spike in the next couple of years to put it on par with previous recoveries.

So far this year, economic fears have manifested themselves in the U.S. equity markets. The SPDR S&P 500 ETF Trust (NYSE: SPY) is down 1.5 percent in 2016, while the flight-to-safety trade SPDR Gold Trust (ETF)(NYSE: GLD) is up 19.3 percent.

Disclosure: the author holds no position in the stocks mentioned.

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Related Articles

10 Gold Stocks That Could Be The Next Buyout Targets In Industry Consolidation Wave

Inflation concerns haven’t delivered the gains gold investors had hoped for in the SPDR Gold Trust (NYSE: GLD) over the past year. read more

4 Simple Things To Do Before Buying Your First Share Of Stock

The stock market is on a roll heading into 2021, and trading apps like Robinhood have made it easier than ever for American investors to jump into the stock market for the first time. read more

Bitcoin Crosses $20K For The First Time. Is This Rally A Repeat Of 2017?

Bitcoin hit a new all-time on Wednesday, topping the $20,000 level for the first time and sending the Grayscale Bitcoin Trust (OTC: GBTC) higher by 8.1%. read more

Millennials Are Twice As Likely To Buy Bitcoin Than Gold As Safe-Haven Investment

Unprecedented government stimulus measures, an ongoing global pandemic and a stock market at all-time highs have many investors looking for a safe-haven investment in 2020. read more