Slow and steady wins the race – but does it win the economy? It would appear so. Despite a decline in the final three months of 2014, the economy, overall, is on the rise again – and all signs point to a continuation of growth for 2015. But what has changed? According to experts, quite a bit, including the driving force behind the economy. It would appear that the growth in the stock market as well as the overall economy is beginning to restructure. Health care, oil and consumer-focused companies now fuel the growth, once fueled by banks.
Health care is widely being referred to as the “biotech boom.” With companies like Gilead Sciences expected to close the year with an astounding 300% leap in earnings per share. Along with health care, the ever-declining cost of oil has made quite a surplus in consumer’s pockets, which has caused the funds to reallocate back into the economy. Experts predict that the decrease will save American drivers upwards of $750 this year on gas. Consumer goods are up and so is an up-and-coming consumer-focused chain – Chipotle – which is suspected to report $4.1 billion. Other consumer sales companies, like Disney, are reporting heightened gains as well.
Couple this with the continued growth in housing – with mortgage applications doubling in January – and all signs point to significant economic growth.