Is the Economy Good or Bad?

Investors often ask about how the economy is doing. This is no surprise because we are constantly inundated with information; it can be difficult to draw accurate conclusions when much of the information is biased and incomplete. 

The answer to that question, and any question, depends largely on where you get your information. The primary source of investor information is the financial media. Yet, the media often leads with fear, reports of crises and the need to act urgently – because that is what gets people to tune in. Rarely, if ever, do you get the full story. 

For example, in 2024, the media ran several headlines credit card debt hitting a “staggering” $1.3 trillion. They also stated that such level of debt was a crisis. 

But you probably didn’t hear that there is a record $7 trillion in money market assets alone. Why would the media “conveniently” leave that fact out? Because it makes credit card debt seem small and manageable.  

The media also reported record household debt, which currently stands at $18 Trillion. That is a huge amount! But it is next to nothing compared to total assets. Total household assets, as reported by the Federal Reserve, is $190 trillion. Household net worth hit an all-time record! 

When we put things in context, we are better able to get the entire picture, which is necessary to making wise financial decisions. But you can’t rely on the media to provide complete, unbiased information. Following the three steps below will help you get the information you need (and if you want, you can just skip right to step 3): 

1. It’s necessary to obtain multiple data points
2. Put the data in context 
3. Let us help for an unbiased viewpoint with more complete information