Bill Gates on the US economy
Billionaire investor Bill Gates shared his view on the US economy during a Reddit Ask Me Anything production. Gates is optimistic about the US economy despite some obstacles he expects in the path ahead.
Gates said, “Despite this prediction of bumps ahead, I am quite optimistic about how innovation and capitalism will improve the situation for humans everywhere.”
Legendary value investor Warren Buffett already said a year ago that innovation and productivity will drive economic growth in the United States. Innovation is playing a major economic role in the current scenario. The demand for technology has been improving gradually. The higher demand for technology and various services are pushing the level of innovation much higher.
US economic growth
According to a report provided by the Bureau of Economic Analysis, the US economy (SPY) (QQQ) grew at an annual rate of 2.6% in 4Q17 compared to 3.3% growth in 3Q17. It grew at an annual rate of 2.5% in 2017. The improving economic growth in the United States has been mainly supported by a significant improvement in consumer spending and export orders.
According to projections provided by the OECD (Organisation for Economic Co-operation and Development), the US economy could grow at an average rate of ~2.6% over the next ten years. The above factors will play an important role in economic growth.
The SPDR S&P 500 ETF (SPY), which tracks the performance of the broader market S&P 500 index, rose 19.7% in 2017. The PowerShares QQQ ETF (QQQ), which tracks the performance of the major technology stocks, rose 32.6% that same year. The improvement in fundamental factors and economic growth mainly supported growth in the past year.
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