What to Expect from This Newfound Economic Strength

Editor's Note: Money Morning Members have some of the best financial experts in the world working for them - just look at how in-demand they are in the media. They save the "good stuff," investing ideas, for Members, but FOX Business and MSNBC, for example, often call on them to give their read on the markets or make predictions about what's coming next...  

After a financial crisis and years of anemic GDP expansion, every investor in the market is suddenly staring real, robust economic growth prospects in the face.

Expectations were that the economy would grow by 2.5% in the third quarter of 2016, but annualized growth actually trounced those expectations to come in at 2.9%.

What's more, the U.S. economy stands to receive lots of stimulus thanks to the incoming administration's stated growth goals of between 3% and 5% GDP expansion per year, goals that now look increasingly attainable.

Massive tax cuts, big boosts to military expenditure, and an ambitious infrastructure buildout can all be expected to give the economy (and stock prices) a significant shot in the arm.

Still, not all indicators are flashing neon green, and not everyone is on the same page. Bears point to some ominous signs out there: The S&P 500's P/E ratio is inching closer to 26, boosted by cheap money and valuations almost totally unsupported by earnings. Corporate debt is high, north of $5.03 trillion at the start of 2016, while the Fed appears all but totally certain to make that debt much more expensive by the end of 2016. And the inflation currently creeping in around the edges may run wild, powered by stimulus.

So, as happens often, Stuart Varney of FOX Business' "Varney & Co." invited our Capital Wave Strategist, Shah Gilani, on his program to learn the score, to find out whether we're due for more growth and stronger markets in the future... or whether there's a downturn in the cards. In less than a minute, Shah set the record straight...

You can get "the good stuff" from Shah twice each week, at absolutely no charge, by getting his Insights & Indictments service. He's already recommended several profit plays for investors ready to make money over the next four years. Click here to subscribe, and you'll get his latest report on the single best way to profit from a Trump administration, too.

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