2013-02-12
Over the past couple of weeks, I have been helping a buddy of mine put together a workout routine that we hope will help him physically and mentally deal better with his kids, job and life. He has been at it for one month now, and the results are showing. He is stronger. The problems in his high-pressure job seem more manageable, and his heart rate is slowing. He has begun to turn his life around through discipline, hard work and persistence.
The experience made me think of the recovery of the US economy from the last economic crisis. The last recession, which spread across the world in 2008, had its origins right here in the United States. The world blamed the excesses of the United States, its housing bubble, and Wall Street greed. These issues all seemed to indicate that the United States with its free market system was somehow flawed.
The pundits added to the US thrashing, saying that the United States doesn’t produce anything anymore, Americans don’t work hard and everything is made in China.
The funny thing is that in 2012 the tide began to turn. The eurozone began to falter and fell into recession. Exports lagged and unemployment soared. In China — the great rising economic superpower — labor costs rose and manufacturing in some industries left the country. Tales of wild real estate excess were rampant, and empty malls and office buildings spooked the market.
In the United States, however, it was a different story. The economy grew steadily, as if it had decoupled from the rest of the world. Now we see that the equity markets have been moving higher for more than nine months.
The management at the companies we talk to tell a recurring tale. They say they have cut costs, are asking their employees to work longer hours and have spent the last four years making better and more salable products. We are hearing this story from almost every company we deal with, and the results are being seen on the metrics of companies from tool die makers to big auto manufacturers and technology giants. And guess what? In 2012, the US economy expanded, unemployment fell, productivity rose and profits picked up. Almost all US exports increased, and house prices moved higher.
It’s a story that repeats itself cycle after cycle in the United States. Labor and capital readjust after every recession when workers and managements decide they need to do better. They all chip in to become more competitive. And somehow the economy and all its moving parts turn around. As in the case of my gym buddy, when these companies stick to their routines, the results begin to show, and we can witness a physical and mental improvement. The United States, despite all of the negative comments, is actually in better shape than it has been in many years. Just look at the numbers. And the story behind these numbers is discipline, hard work and a dedication to improvement. This may not be the whole story, but it is a big part of it, and a part that investors should not overlook.
No forecasts can be guaranteed.
The views expressed are those of James Swanson and are subject to change at any time. These views are for informational purposes only and should not be relied upon as a recommendation or solicitation or as investment advice from the Advisor.
24070.65
Fitness 101: A disciplined approach to financial and physical well being
Over the past couple of weeks, I have been helping a buddy of mine put together a workout routine that we hope will help him physically and mentally deal better with his kids, job and life. He has been at it for one month now, and the results are showing. He is stronger. The problems in his high-pressure job seem more manageable, and his heart rate is slowing. He has begun to turn his life around through discipline, hard work and persistence.
The experience made me think of the recovery of the US economy from the last economic crisis. The last recession, which spread across the world in 2008, had its origins right here in the United States. The world blamed the excesses of the United States, its housing bubble, and Wall Street greed. These issues all seemed to indicate that the United States with its free market system was somehow flawed.
The pundits added to the US thrashing, saying that the United States doesn’t produce anything anymore, Americans don’t work hard and everything is made in China.
The funny thing is that in 2012 the tide began to turn. The eurozone began to falter and fell into recession. Exports lagged and unemployment soared. In China — the great rising economic superpower — labor costs rose and manufacturing in some industries left the country. Tales of wild real estate excess were rampant, and empty malls and office buildings spooked the market.
In the United States, however, it was a different story. The economy grew steadily, as if it had decoupled from the rest of the world. Now we see that the equity markets have been moving higher for more than nine months.
The management at the companies we talk to tell a recurring tale. They say they have cut costs, are asking their employees to work longer hours and have spent the last four years making better and more salable products. We are hearing this story from almost every company we deal with, and the results are being seen on the metrics of companies from tool die makers to big auto manufacturers and technology giants. And guess what? In 2012, the US economy expanded, unemployment fell, productivity rose and profits picked up. Almost all US exports increased, and house prices moved higher.
It’s a story that repeats itself cycle after cycle in the United States. Labor and capital readjust after every recession when workers and managements decide they need to do better. They all chip in to become more competitive. And somehow the economy and all its moving parts turn around. As in the case of my gym buddy, when these companies stick to their routines, the results begin to show, and we can witness a physical and mental improvement. The United States, despite all of the negative comments, is actually in better shape than it has been in many years. Just look at the numbers. And the story behind these numbers is discipline, hard work and a dedication to improvement. This may not be the whole story, but it is a big part of it, and a part that investors should not overlook.
No forecasts can be guaranteed.
The views expressed are those of James Swanson and are subject to change at any time. These views are for informational purposes only and should not be relied upon as a recommendation or solicitation or as investment advice from the Advisor.
24070.65
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