Wednesday's Scoop: Drifting🌤️

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Here’s what you need to know today to inform your work, spending, and investments…

1. The government is on track for a partial shutdown on Friday.

2. 2023 ended up being a good year for the broader economy.

3. US renewable energy investment is at record highs.

The US economy actually had a good year last year, even if it might not have felt like it. In a revised update, the Commerce Department reported real Gross Domestic Product (GDP) grew at a 3.2% annualized rate in the final three months of the year, down from 4.9% in the third quarter but way better than economists predicted. The economy grew 2.5% throughout 2023. Americans spent a lot more, and disposable income shot up, even after accounting for inflation and taxes. Businesses exported and invested more, and the government spent more.

Congress must agree on a budget or pass another procrastination bill by Friday to avoid a government shutdown. The House, Senate, and President have to agree to an annual budget every year by October 1. This past year, they couldn’t come to terms. The House fired the Speaker for the first time ever and passed the first Continuing Resolution to delay a decision for six weeks. In November, they did it again. In January, Congress gave themselves until March to determine the budget for the year. Now, the deadline approaches again without a clear plan.

The Market: ⬇️ -0.2%
S&P 500: 5,069.76
1Mo: +3% | 1Yr: +28% | 5Yr: +81%

The market floated sideways today without much major news. The economy was doing well at the end of the year, but warning signs have started to show in January and February. The AI optimism can only go so far.

Wind and solar energy investment reached a new record in the United States last year, but it’s still insufficient to meet America’s climate goals. Zero-emissions electricity generation and storage surged 32% in 2023, thanks to accelerated investment from the passage of the Inflation Reduction Act. However, an analysis from a joint group of researchers at Princeton, MIT, and others said that investments need to scale faster if the country intends to meet its goal of reducing greenhouse gas emissions by 40% by 2030.