'ROARING' 2020s: A look inside the economy heading into the new year

Market Outlook - The market is expected to continue its upward trend in 2026, with a projected increase of about 10% to reach 7,700 [2] - The growth industries, particularly consumer discretionary, are currently at high levels in terms of price-to-earnings (PE) ratios, indicating potential opportunities outside of these sectors [15] Demographic Trends - The retirement of baby boomers is leading to a slowdown in the growth rate of the labor force, creating a shortage of skilled workers and increasing pressure on companies to enhance productivity [4][3] - Baby boomers are experiencing significant wealth accumulation, owning substantial assets such as stocks and real estate, which contributes to their spending power [6][10] Economic Indicators - The GDP growth rate is reported at 4.3%, indicating strong economic performance, yet disposable personal income remains stagnant at 0% [12] - The relationship between productivity and real wages is emphasized, suggesting that real wages must increase to sustain economic growth [13][14] Technology and AI Impact - The emergence of AI technologies is expected to drive productivity improvements across various sectors, with many companies exploring efficiency gains beyond just AI [17] - The "impressive 493" refers to companies that are likely to benefit significantly from technological advancements, particularly in productivity [16] Gold and Bond Market Projections - The gold price target for 2026 has been raised to 6,000, with a long-term outlook of 10,000 by the end of the decade [19][20] - Bond yields are anticipated to range between 4.25% to 4.75% in 2026, with the potential for lower returns on diversified portfolios [21]