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FBN Willis Report: Is It Really Just The Weather?

  • Written by Syndicated Publisher 1 Comment1 Comment Comments
    February 24, 2014

    I recently sat down with Gerri Willis at Fox Business News, along with Rick Sharga to discuss the economy and whether it is really JUST the weather that is dragging on the economic reports as of late…or is it something else?

    This is a subject I have touched on recently stating:

    “The recent “polar vortexes” have crippled much of the North and the North East with record low temperatures and severe weather and snow conditions.  The economic impact of just the first polar vortex that hit in December is already calculated to be well above a $10 billion dollar hit to the economy.  Surging electricity and heating costs are eating into real disposable incomes which is diverting consumption away from retailers.  Inclement weather has shut down manufacturing activity and will crimp demand for employment and new orders as witnessed by the sharply reduced employment report in December and this week’s ISM survey.

    The chart below is the STA Economic Composite Index (for details on its construction read this) from January 2011 to present.  As you can see, the trend of economic growth has clearly been on the decline rather than gaining strength as has been hoped by the majority of economists.  I have also labeled events that have contributed to the rolling recoveries and slowdowns along the way.”


    Moreover, as I discuss in the interview below, the trend of consumer weakness, which makes up 70% of economic growth, has declined to levels that are more normally associated with very slow growth economies.


    I also agree with Rick’s views on the mortgage and housing market.  See my latest housing updates below.

    Is Housing Set To Lift Off?

    Updating The Housing Recovery

    Images: Flickr (licence attribution)

    About The Author

    Lance Roberts – Host of StreetTalk Live

    After having been in the investing world for more than 25 years from private banking and investment management to private and venture capital; Lance has pretty much “been there and done that” at one point or another. His common sense approach has appealed to audiences for over a decade and continues to grow each and every week.

    Lance is also the Chief Editor of the X-Report, a weekly subscriber based-newsletter that is distributed nationwide. The newsletter covers economic, political and market topics as they relate to the management portfolios. A daily financial blog, audio and video’s also keep members informed of the day’s events and how it impacts your money.

    Lance’s investment strategies and knowledge have been featured on Fox 26, CNBC, Fox Business News and Fox News. He has been quoted by a litany of publications from the Wall Street Journal, Reuters, The Washington Post all the way to TheStreet.com as well as on several of the nation’s biggest financial blogs such as the Pragmatic Capitalist, Zero Hedge and Seeking Alpha.


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