March 15, 2022

The LJE quarterly forecast has a dual purpose. One is to produce a forecast that accurately captures the economic environment we foresee for the coming quarter. The second objective is to dress up the forecast with a parsimonious and coherent description of the foreseen economic environment. The combined forecast paints the following picture for the coming 12 months: A declining inflation rate and a decelerating pace of economic activity with a strong likelihood that the real GDP growth rate will fall below the trend line and the inflation rate will fall below the Fed’s 2% target rate. The forecast adds up to a slowdown in the earnings growth. Add to this the market expectations of higher interest rates, and a not so bullish outlook begins to emerge. Although we expect positive stock market returns, our forecast points to high single digit returns at best during the next 12 months.

You must have an active account to view these reports. You may register for a trial here

Download Complete Report in PDF Format

Download Complete Report in Word Format