Goldilocks Economy

Not too hot and not too cold. An economy with sound growth, inflation in the target range, a decent job market, interest rates that are stable. Could this be a Goldilocks Economy.

The term “A Goldilocks Economy” describes an Economy which is sitting just about right, in terms of rate of economic growth. Stable inflation, near full employment and interest rates are unchanged. In this state the economy is not at risk of overheating where corrective measures need to be taken. Nor too cold where the economy could need some stimulus measures. This is a Goldilocks Economy, an Economy which is good for investing with businesses having reasonable confidence in achieving their objectives. Economic growth is positive and predictable, thus companies should be able to generate positive earnings growth and with stable interest rates, invest for the future.