Here we see a conclusion to the first four months of 2021 and it is positive. We see several signs leading to a strong bull market. We have rapidly improving conditions that leads several investors towards an optimistic outlook.
We have witnessed strong economic growth. With the help of two stimulus payments and the progress of vaccinations the GDP (Gross Domestic Products) grew around 6.4%. Consumer spending skyrocketed with the stimulus checks. Consumer spending accounts for 70% of the U.S. economy and went up 10.7%. Along with spending business investment went up 9.9% and government expenditures increased 6.3% along with state and local spending adding to the growth for the first time since the pandemic.
Following the first quarter economic activity is only 1% below peak and on route to return to the pre-pandemic levels this new quarter. This outcome could not have been possible 6-months ago. We have job growth rising about with personnel saving and spending. This should start for a faster economic growth in the second quarter.
We also see rising earnings. "Based on a little more than half of the S&P 500 companies that have reported earnings so far, 87% are beating estimates by a historically elevated 24% rate." says Angelo Kourkafas with Edward Jones.
