BCA Weekly Commentary 6/18/21: Economic Growth Worries Increase


SUMMARY. Our core assumption for our 7 model portfolios continues to be for 2022 to see slower overall economic growth. THE CONCENSUS thinking up until this week was strong growth to continue thru 2022. In our prior note we raised concerns over growth tied to waning stimulus, inflation & interest rates as well as concern over higher taxes. We believe the combination of weaker economic data over the past weeks, Federal Reserve worries on inflation combined to ignite concerns over growth and a correction in value stocks as well as shift back to growth stocks. Given our expectations of slowing growth as we move into 2022 this may continue thru the rest of the year.