Tags: mario gabelli | extraordinarily good | economic growth | 2021

Mario Gabelli: 'Extraordinarily Good' Economic Growth in 2021

By    |   Friday, 23 October 2020 01:23 PM

Investing guru Mario Gabelli sees the American economy growing at a robust clip in the new year despite the recent coronavirus spike and political uncertainty.

“In the U.S., I see extraordinarily good growth in 2021,” the chairman of Gamco Investors said at the annual CNBC Financial Advisor Summit. “That’s because of a long runway for automobiles, a long runway for housing and I see some return of spending in commercial aviation,” Gabelli said.

Gabelli also advised investors buy a market-tracking exchange-traded fund, which could lead to annualized returns ranging between 6% to 8% over the next decade, CNBC.com explained.

However, he warned that near-term rates will start rising “over time” despite the Federal Reserve expectations to maintain an easy stance on monetary policy.

Gabelli also predicted that “taxes are likely to go up,” which would hinder corporate profits.

Meanwhile, a  recent survey released by the National Association for Business Economics of 52 forecasters revealed that the U.S. economy faces risks from a potential resurgence of the coronavirus and from the failure so far of Congress to provide additional financial support for struggling individuals and businesses.

Similar to many other economists, the NABE’s forecasters have estimated that the economy, as measured by the gross domestic product, grew at a 25% annual rate in the just-ended July-September quarter.

That would be the largest quarterly gain on records dating to 1947. But it would follow an even bigger contraction in the April-June quarter, when the coronavirus paralyzed much of the economy. For the current October-December quarter, the NABE panel foresees a 4.9% annual growth rate.

The recovery from the pandemic recession, in the view of the forecasters, will remain sluggish in coming months. A majority of them don’t expect GDP to return to its pre-pandemic levels until sometime in 2022, the Associated Press reported.

For all of 2020, the panel expects GDP to decline 4.3%. That would be the economy’s first full-year contraction since a 2.5% fall in 2009 at the end of the Great Recession. For 2021, the forecasters expect growth of 3.6%.

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Investing guru Mario Gabelli sees the American economy growing at a robust clip in the new year despite the recent coronavirus spike and political uncertainty.
mario gabelli, extraordinarily good, economic growth, 2021
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2020-23-23
Friday, 23 October 2020 01:23 PM
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