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Economic Forecast: Bearish vs. Bullish Outlooks

BPC ⁣President and Group ‌Publisher Chris Conetzkey moderates ⁢the 2026 Economic Forecast⁢ event Jan.20. Photo by Duane Tinkey

At the business Record Economic Forecast on Jan. 20, moderator Chris Conetzkey asked ⁢each panelist to share one thing about the economy that makes them feel bearish and one thing they feel bullish about.

Here’s what they said. Their responses have been⁣ lightly edited for clarity ⁤and length.

Robin Anderson, state chief⁣ economist and division administrator, research and policy division, Iowa‌ Department ​of Revenue

Bearish:⁢ “What’s happening with long-term interest rates and what are the risks to seeing long-term interest rates rise for communities⁢ that rely on⁤ things like prime loan rates, ​auto⁤ loan rates, ​mortgage rates, and if⁣ we see ⁢long-term interest rates rise and move ⁣in the opposite direction to short-term ​interest rates, what’s that⁤ going to do to the Main street economy?”

bullish: “I do ⁢feel optimistic about productivity.‌ … It is showing up in the nationwide economic data, ​and productivity picking up ⁣is a good thing, ​because that means⁢ the economy can grow without inflationary forces.”

debi Durham, director, Iowa Finance Authority and the‍ Economic Growth⁢ Authority

Bearish: “It’s still population. That is, I ​think, one of the⁣ biggest challenges we have, but it’s not just Iowa, it’s national. And I do believe⁣ that China is majorly overestimating ⁢how many people they actually have. So when you think about that, I think that’s a real problem for the‌ world.”

Bullish: “Simultaneously occurring, the bullish part of me is [population is] where we have to​ focus as we’re not going to⁣ have people coming in after you see the retirees ⁤leave in record numbers. We’re focusing on that whole industry 4.0 and automation so that ⁢we can still increase wealth by growing productivity, so for me, that‍ productivity factor⁤ is the luminous spot.”

Amy Friedrich, president of benefits and protection, Principal Financial Group

“I’m going ⁣to come back ‍to the point I opened up with,‌ which was certainty. ‌I feel like we’re⁢ kind of shooting ourselves in our own foot on some of the issues related to things that can feel a bit more certain. So I worry that, especially for small and mid-size businesses [as] there’s as many decisions made off of sentiment as they are made off of spreadsheets. And the smaller the‌ business,​ the more you end up seeing that dynamic play out. If Iowa can grab the pieces that⁣ are certain, ‍make sure we’ve ⁣got clear indications of what that plan is and ‌how we’re going to fund those

Okay, here’s an adversarial research breakdown of the provided text,‌ adhering to the strict instructions. ⁢ I will focus on identifying potential claims for verification and ​outlining a search strategy.I will not rewrite or paraphrase ⁢the text itself.

Overall Assessment:

The text presents economic outlooks (bullish and bearish) from two individuals – one focused on broader market trends ​and the other, ⁤Jeff Lorenzen (CEO of American Equity), on regional (Iowa/Midwest) and financial institution-specific factors. ‍ The‍ statements are ⁣largely predictions and ⁤ opinions, but they ‍are based on observed trends and economic indicators.‍ Thus, verification will focus on the underlying data supporting those opinions,⁢ rather than the opinions themselves being “true” or “false.” The timeframe mentioned (next 5-10 years) is crucial for ‌research.

Phase 1: Adversarial Research &⁣ Freshness Check

Here’s a breakdown of claims to verify, categorized by speaker, ⁣and‌ a proposed research⁤ approach. I’ll⁤ also note the inherent difficulty in verifying predictions.

I. First Speaker (Unnamed – Market/Asset Performance)

* ‌ Claim 1: “The next ⁢five‍ or 10 years are​ certainly not going to perform the ⁣last five or 10 years as far as where I strongly believe⁣ the performance of financial assets are‍ going⁣ to be.”
*⁢ ‍ Verification Difficulty: High. This is a broad prediction.​ ⁤ Verification requires⁢ looking at ancient performance of various asset classes (stocks, bonds, real estate, commodities) over the past ⁢5-10 years and then ‍comparing that to current economic forecasts for the next 5-10 years. It’s about comparing past trends​ to‌ projected trends.
* Research Keywords: “financial asset class performance outlook,” “market forecast 5 year,”‍ “market forecast ⁢10 year,” “historical asset class returns,” “economic projections​ [year range – e.g., 2024-2034]”, “long-term investment outlook.”
‍ * Authoritative Sources: Federal ‍Reserve reports, IMF World Economic Outlook, World Bank reports, reports ⁢from major‍ investment banks (Goldman ⁤Sachs, JP Morgan Chase, Morgan Stanley – with caution, ⁢recognizing potential⁤ bias), Bloomberg, Reuters,⁤ Financial Times, academic economic​ research papers (via Google Scholar).
* Claim 2: “If ‌you have wealth to basically⁤ spend a little of that down. You make 20% of the market, you take 2% or ⁤3% of ⁢that out…” (Implies a strategy of ‌reducing exposure to the market).
​ ⁢ * Verification Difficulty: moderate. This is a strategy suggestion. Verification involves examining ‌current market conditions and whether a slight reduction in exposure is considered prudent by financial analysts.
* ‌ Research Keywords: “market correction risk,” “portfolio ‍rebalancing ‌strategies,” “asset allocation advice,” ​”reducing market exposure,” “cash allocation strategies.”
⁤ * Authoritative Sources: ‌ Same as Claim 1, plus financial advisor⁣ publications (e.g.,​ Kiplinger’s, Barron’s), investment⁤ research firms (e.g.,Morningstar).

II. Second Speaker ​(Bullish – Ag economy/Regional⁢ Economy)

* Claim 1: “The ag economy and the corollaries, the transportation and logistics economy, both in the ⁣Midwest and nationally, have frankly just been so bad for the last few years, we are definitely seeing some greenshoots ⁢there. We’re seeing better performance. We’re⁣ seeing fuller trucks, better routes, more profitable routes.”
* Verification⁣ Difficulty: Moderate.This ‍is about recent trends.
⁤ * ‍ Research Keywords: “agricultural economic⁤ conditions Midwest,” “trucking industry performance,” “logistics industry trends,” “freight rates,” “farm income data,” “agricultural commodity prices.”
​ * ​ Authoritative Sources: USDA (United States Department of Agriculture) reports, Bureau of Economic Analysis (BEA) data, Department of Transportation statistics, American Trucking Associations (ATA) reports, industry publications (e.g., Farm Journal, Transport Topics).
* Claim 2: “I’m slightly bullish on the regional economy, just because it does feel like we’re bouncing on the bottom⁤ and we ⁣might actually get some growth this year, ⁢so​ that’s actually a⁣ real‌ positive, and Iowa ​needs it.”
* ⁣ Verification‍ Difficulty: Moderate. Requires checking Iowa-specific economic indicators.
* Research Keywords: “Iowa⁣ economic outlook,” “Iowa GDP⁣ growth,” “Iowa unemployment⁤ rate,” “Iowa business confidence index.”
* Authoritative Sources: Iowa Economic Development authority, Iowa Bureau of Labour Statistics, University of Iowa economic research, Federal ⁤Reserve Bank of Chicago (regional data).

III. ⁤Jeff⁢ Lorenzen (CEO, ​American Equity)

* Claim 1: “I think from the weakness side it’s going to ⁤be around skilled labor. I still believe that labor availability ⁤and the

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