The dollar is still weakening, inflation keeps rising, and now the trade deficit is surging to record levels (again).
Perhaps market fundamentals are beginning to overtake media hype. If that’s what is happening, this “trifecta” of economic signals could make saving for retirement even more of a challenge in 2021.
Coming in third place: record-shattering trade deficit
To examine why this “trifecta” could do that, let’s start with the
record trade deficit.
The balance of trade measures the dollars America sends overseas to pay for foreign goods and services, compared to the dollars flowing into America in exchange for U.S. goods and services.