First, the bad news.
It’s been five years since the last recession ended and 6 1/2 since the subprime crisis. That’s a long time without a major shock. Expect something negative to happen in the next two years.
We just don’t know exactly what it will be.
Now, the good news:
- Unemployment will fall.
- Inflation will simmer.
- The stock market will continue its amazing run — I expect a real GDP growth of 2.6 percent.
For the full forecast, read “U.Va. Darden Professor Predicts More Employment, Low Inflation and a Higher Dow, but Watch Out!”
These predictions were captured at the 2014 Economic Outlook gathering held in January at the Darden School of Business.