What Good News on the Economy Means for Investors

Despite record markets, low inflation relative to peers, and rising real wages, many Americans still feel squeezed, particularly by food and past price hikes, and tend to credit themselves for wage gains while blaming government for inflation.

The U.S. now produces more energy than it consumes and leads the world in production, giving it a significant edge over countries like China that are vulnerable to supply disruptions in any potential conflict.

Galloway stresses that a tiny group of stocks drove most of last year’s gains, making it unrealistic for average investors to identify them in advance; low-cost index and ETF funds efficiently capture overall market performance.

He advises people to devote their mental and emotional resources to their day jobs and outsource investing to diversified, low-fee funds instead of chasing complex products or star managers who often “rip you off.”

Using post-2008 returns as an example, Galloway notes that an 11% annualized return roughly doubles money every seven years, especially impactful if you start investing in your prime earning years.