Fundamental Reasons For A Bullish View Of The Economy Beyond 2025

Summary

• Despite widespread pessimism, I see strong reasons for cautious optimism about future economic growth, driven by fundamental macroeconomic forces.
• AI-driven technological breakthroughs and reduced real private debt burdens are powerful forces supporting the next economic expansion, especially post-2025.
• A revitalized credit cycle, coupled with ongoing AI investment, could spark a booming economy as early as 2026-2027, particularly in tech sectors.
• The main risk is rising U.S. government debt, but if managed, these growth drivers could far outweigh current headwinds—2025 remains a transition year.

We Are

Many investors, and indeed people in general, are now gripped by pessimism about the future of the economy. Geopolitical risks, trade wars, inflation, high-interest rates—it seems that the clouds over the global economy are thickening, and all roads lead to crisis. However, people may be overlooking some fundamental macroeconomic

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.