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Five Predictions for 2014

Prediction #1: Tepid GDP growth.

Goldilocks will set the table again -- not too hot, not too cold. Real per capita GDP will be about 1.5%; real GDP will be about 2.5% for 2014. The economy will not roar (kinda like the 2013 Detroit Lions). The Fed will be playing QEIII (or what they call, LSAP: Large Scale Asset Purchases) tapering like the brake pedal in your car...if it finds the economy struggling to get up hill, they will back off tapering; if they find the economy cruising downhill, the Fed will taper a bit more. In any event, we can expect less Fed monetary vapor in the system.

 Bottom line: be prepared to be bored with a snoozy economy for yet another year.

 

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