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Capital Group senior economist Jared Franz draws a parallel between the US economy and "The Curious Case of Benjamin Button," suggesting the economy is "aging in reverse."
"We look like we're in a late cycle," Franz told Asking for a Trend host Josh Lipton, "but instead of going into recession, we could actually be aging in reverse and going into midcycle." He noted that, historically, mid-cycles can extend up to five years, creating sustained investment opportunities.
Franz highlighted the post-pandemic labor market's dynamics, with persistent demand exceeding supply. He suggested that continued labor market resilience—which includes 3.5% wage growth, unemployment between 4–4.5%, and steady job creation—would create "a good income setup which drives spending."
For investment strategy, Franz advised investors to "stay invested," highlighting artificial intelligence as a promising sector while recommending related power and utility companies as opportunities.
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This post was written by Angel Smith