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In August, I posted a blog about an optimistic outlook on US Economy by TRP Chairman. On Oct 24th in their monthly report, TRP Chief ecnomist Levenson has published a positive and more upbeat message about the US Economy.

Here is a snapshot and key points of the message,

Economy Under Pressure
The U.S. economic recovery appeared to be in serious jeopardy during the summer, and equity markets saw across-the-board declines. Anemic employment growth, coupled with Europe’s deepening debt crisis and lingering fears of recession there, prompted fears from investors that the U.S. would suffer a similar fate.

Sectors that typically lead during times of economic recovery remained soft.Overall, private sector job growth, a critical component of recovery, came to a standstill in August after substantial gains earlier in the year.

Moving In the Right Direction
Levenson points to two forces from the early part of the year—the oil supply shock in light of Middle East political upheaval and interruption of global supply chains after Japan’s devastating earthquake and tsunami—as primarily responsible for squelching growth during the first half of 2011. Going forward, Levenson predicts restrained but positive expansion, estimating a rate of 2% gross domestic product (GDP) growth for 2012.

Better Trends in Real Estate and Beyond
Levenson predicts a future doubling of the current level of home construction simply to keep up with the country’s population growth over time. He also points to a meaningful reduction in the number of vacant homes in recent quarters.

On a global scale, emerging markets are continuing to grow relatively fast and are benefiting from favorable productivity and demographic trends. Demand in these regions is likely to be a strong source of growth for global exporters, which will benefit corporations in the U.S. and the rest of the developed world.

Putting the Recession Behind Us
With so much uncertainty in the economic, market, and political environments, it is hard to say when investors will again turn their attention to renewed growth opportunities. But Levenson feels that many of the major problems that led to the 2007-2009 recession are beginning to resolve themselves. He suggests that if policymakers in Europe find a way to stabilize the region’s debt problems, markets will stabilize over the next six months and allow the underlying positive aspects of the U.S. economy to gain some traction.

To read full article, go to TRoweprice.

The message seems to be really upbeat and rosy but after the interview lot more things happened. We saw big decline on the wallstreet on 11/9/2011 because of Italy government unstability and Greece uncertainity on implementing measure suggested by Euro Zone countries to get more funding. If similar type of news continue to hinder the market, I don’t think we will have good smooth 2012.

We can continue to expect a bumpy road and adding to that, 2012 is election year and many don’t expect too much good things to come from deadlocked congress to save the country.

Keep your investing mind and fingers crossed and continue to watch the market and don’t take impulse decision. Take a long term approach as always and invest accordingly.