In some instances, the stock market in the USA is at a high point in terms of where it was at the end of the last decade. However, it is important to note that there is one thing for certain and that is the overall trend has to be managed over time so as to allow people to remain where they are in terms of economic stability.
Our National Debt
The question that is being asked is “Where is the national debt going to be at the end of this decade?” Of course, the answer will not be accurate if the government continues to spend more money than it makes in revenue. Therefore, this means that you have to monitor the overall economic situation to see what is happening over the next few years.
One thing which has to be noted is that we cannot ignore how this affects international relations. The economic decline in the USA over the last year and a half has had a major impact on the global economy and is a main issue for people across the globe.
Therefore, it would be advisable to be aware of the fact that the US has been lowering its influence in world affairs for quite some time now. As a result, the country has become less respected and less attractive to potential investors as a result of this.
As a result, there is a risk that the stock market will fall even further in the US and could cause the real estate market to plunge as well. This will cause even more problems to people living in areas such as New York, California, Florida, Texas, Nevada, Illinois, Georgia, North Carolina, and Arizona.
There is also the concern of future inflation, which will be fueled by the long term trends in the economy and what happens to the purchasing power of people throughout the globe. The economy will remain at a very low level in terms of GDP due to the fact that many Americans are now earning less than they used to.
Even with these facts, many people are predicting that there will be no problem with regards to future inflation as long as the US continues to reduce spending at home. However, the United States must pay its debts on time or it will end up causing a domino effect that will cause the whole world to suffer.
What’s to be Expected From a Recession
Some of the future forecasts show that the recession which is currently occurring in the USA will be relatively mild. It will however last for about five years before things will stabilize again.
In spite of all of this, people will need to prepare themselves for an eventuality such as a collapsing stock market or housing prices falling even further in the US. These things are not impossible to happen but it is important to note that they do not occur in a matter of months.
Those who have the funds to invest in the stock market may be forced to sell their stocks when there is a fear of a crash. Fortunately, those who are planning to wait until things stabilize will have plenty of time to do so, provided they have not already taken out any sort of cash out of their retirement accounts.
There are plenty of opportunities to invest in the stock market but it is vital to realize that this type of investment will only bring you a small profit. All other things being equal, you will not make much if anything from investing in the stock market.
In spite of all of this, it is important to take note of the fact that the government policies in the US have been designed to help the average person so that they can have access to the money they need in order to buy the most basic necessities. However, a portion of the money must be set aside to allow people to keep their homes in good condition.