Economist and portfolio manager Guillermo Dominguez believes the “very serious old guy complex” of bearish economists are wrong, and the U.S. economy is on the brink of a rapid expansion led by wage growth and rising consumption.
Mr. Dominguez is a hedge fund manager for Florida-based New River Investments. In a recent blog post, he noted three trends suggesting an inflection point in America’s currently anemic job market. One, the labour force is no longer increasing in size. Two, public-sector employment has stabilized after a long period of decline (and shows signs of growth). Three, U.S. wages are growing at a rate seen in previous economic recoveries.