Everybody loves the idea of the Goldilocks Economy. Not too hot. Not too cold. Just right.
The Fed is leaving interest rates unchanged, and telegraphing that is currently isn’t planning on making any changes next year either.
Stock market pundits have given up on calling the impeding doom of a stock market crash (at least for this month).
Job reports show job growth, but not too fast of job growth. And while wage are growing, they are doing so slowly.
Not Goldilocks
However, you won’t see a lot of articles on a Goldilocks Economy happening. While things are definitely not too hot and not too cold, there is a connotation with Goldilocks that things are inherently good. This economy seems more like the negative version of a Goldilocks situation. As in things aren’t too bad, as opposed to things are too good.
In a way, this is better for investors and the economy in general. Too much optimism can turn a mild-mannered, almost Goldilocks economy into a runaway bubble and no one wants that.
The next year will be very interesting. Once the holidays are past and the country stops paying attention to impeachment in Washington, the reality of just another year will be upon us. How America reacts to that will tell us how 2020 is going to go.
