Best Companies to Invest Into In the Current Economic Environment
By The Grey Rhino • March 9, 2021
In the previous 2 posts, I talked about the first 2 factors affecting the macroeconomy; interest rates and liquidity.
In this article, we will be looking at the 3rd factor: Economic Growth. When we look at history, economic growth has been the biggest factor that drives stock market prices over time. I will be telling you my predictions on how the economy will grow this year and beyond. And subsequently, how it affects the type of stocks you should invest into.
Economic Growth in 2021
Economic growth is going to pick up. Growth experienced a decline in 2020 because of the Covid-19 pandemic. As such, growth must pick up in 2021 to go back to the normal state. However, this rapid growth is further spurred on by 2 additional factors.
1. Pent up demand
After being deprived from doing a certain activity for some time, we will start to do it excessively once restrictions are lifted.
