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Kingsview Wealth Management Chief Investment Officer Scott Martin said on Sunday that the state of the US economy was “terrible” as inflation reached a new 40-year high.
Martin, a FOX Business contributor, commented on “Fox News Live” when he responded to the latest Fox News poll, which found that almost all voters are worried about inflation and that large numbers continue to view the economy negatively by a majority who expect the situation to get worse next year.
Only 17% of respondents rated the economy positively, the lowest in almost 1[ads1]0 years. Eighty-four percent said it is in only good or bad shape. And a majority of 52% think it will get worse next year. This is the first time in intermittent surveys back to 1998 that more than half have felt that the economy will deteriorate a year from now.
Meanwhile, 52% have changed their summer travel plans due to gas prices, 70% have had to cut back on other expenses to afford necessities, and 75% say inflation has caused them financial difficulties – up from 67% in December.
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Many blame the White House for the financial problems. Fifty-five percent say the administration has made the economy worse, and more voters blame Biden (31%) for gas prices than they think Russia (20%) or the oil companies (14%) are responsible.
Martin predicted that “you will see the polls continue to fall as some of the economic data, inflation figures continue to get worse.”
Martin made the comment four days after it was revealed that inflation accelerated more than expected to a new level of four decades in June as the price of daily necessities remains painfully high, exacerbating an economic burden for millions of Americans.
The Ministry of Labor said on Wednesday that the consumer price index, a broad measure of the price of groceries, including petrol, groceries and rent, rose 9.1 percent in June from a year ago. Prices rose 1.3% in one month from May. These figures were both far higher than 8.8% headline figures and 1% monthly profit forecast from Refinitiv economists.
The data marked the fastest inflation rate since December 1981.
The price increases were extensive, which indicates that inflation may not be close to the top: Energy prices rose 7.5% in June from last month, and are up 41.6% from last year. Petrol costs on average 59.9% more than a year ago and 11.2% more than in May. The food index, meanwhile, rose 1% in June, when consumers paid more for goods such as cereals, chicken, milk and fresh vegetables.
Fiery inflation has created severe economic pressure for most American households, who are forced to pay for more daily necessities such as food, gasoline and rent. The burden is disproportionately borne by low-income Americans, whose already extensive wage slips are strongly affected by price fluctuations.
Martin described the economic situation as “terrible” on Sunday, “especially if you think about it at the consumer level, but also think about it at the producer level”.
“Think of all the costs, as far as gasoline, diesel that goes into selling the goods and delivering them if you are a company out there, so it affects everyone,” he stressed.
Last week, it was also revealed that wholesale prices accelerated again in June as inflation seeped through all parts of the US economy, pushing companies and US households in the form of higher prices for most necessities.
The Ministry of Labor said on Thursday that the producer price index (PPI), which measures inflation at the wholesale level before it reaches consumers, rose 11.3% in June from the previous year. On a monthly basis, prices grew by 1.1%.
Both of these figures are higher than the 10.7% annual and 0.8% monthly estimates from Refinitiv economists, which underlines how strong the inflationary pressure is still.
The markets have experienced volatility in recent months in the midst of the uncertain economic picture.
Martin advised that investors should definitely have a “diversified basket of stocks.”
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He also noted that “when I look at what probably has the best potential to go up from here, I think it’s growth stocks and things in technology.”
FOX Business ‘Megan Henney and Fox News’ Dana Blanton contributed to this report.