Terry Sawchuk on America’s Voice Live: What Does the Latest GDP Data Really Tell Us?

Aug 3, 2021 | America's Voice Live, Blog, Blogs, In the News, Market Commentary

Any information discussed in this article is for educational purposes only. It is not meant to be any kind of recommendation or financial advice. The information contained in this video is intended for informational purposes only. Any opinions are those of Terry Sawchuk and not necessarily those of JW Cole Financial, Inc. or JW Cole Advisors, Inc.

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U.S. gross domestic product (GDP) fell significantly below expectations for April, May and June, with many blaming supply chain disruptions, labor shortages and inflation for the disappointing data. But is the economy really struggling as much as it may seem? America’s Voice Live recently turned to Terry Sawchuk, founder and chairman of Sawchuk Wealth, for insight.

“We are coming out of the worst economic slowdown we have probably seen since the Great Depression. So, it’s hard to measure that stuff,” Sawchuk tells AVL’s Steve Gruber. “I would still argue that the economy is growing. One of the things you have to look at is, even though the rate of change is slowing… it really is still growing. We have a lot to contend with here in terms of the reopening and we’ll see what kind of roadblocks are in the way between now and the end of the year, but I suspect it is not nearly as bad as the headlines read.”

In addition to Sawchuk believing that the latest GDP data shows little cause for concern, he also explains to viewers that inflation, another headline-grabbing phenome, will likely be transitory and not a real threat to the economy. However, the same cannot be said about deflation.

“Deflation is the bigger issue,” says Sawchuk. “In the long run, and I am not saying it’s a problem, but it will be what we’re facing. Deflation is going to be the key thing in the next five years.”

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