Investment strategies focused on economic numbers
After the healthcare bill was pulled on Friday, it looks like D.C. will remain in gridlock. In spite of that, it is important for investors to keep their investment strategies focused on the economic numbers. There are a lot of numbers coming out this week starting on Tuesday with the consumer confidence report. On Thursday we will see the final GDP revision and on Friday we will see the personal income numbers. We will be looking very heavily at these economic numbers and not just D.C. politics.
Positive hope for the economy is becoming reality
We are starting to seeing positive hope becoming reality on the business side of things. A few months ago we saw soft data that consumer and CEO confidence was rising. Now that is turning in to hard data. We saw PMI and durable goods orders getting better which means optimistic CEOs are starting to spend their company’s capital. This is all positive. In spite of the nasty reality in D.C., the US economy is really getting better. We could see investment strategies that are related to corporate earnings and economic growth. All this could happen while the things going on in Washington become nullified and not important.
The European Union and politics
It’s not just in the United States that people are moving away from the politicians. The now 60 year old European Union has an economy that is stagnated because of regulatory control that had nothing to do with their founding mission, which was to improve the economy. The average GDP per person in United States is a little over 51,000, while in Europe it is 34,000 and it’s widening in the wrong way. The 47% of the population there really doesn’t want to have anything to do with the European Union because of this along, with other reasons.
Our investment strategies
We want to stay focused on those individual equities and bonds that are reporting really good earnings. With this current kind of economic growth we are also focusing on individual sectors in the market that are doing well enough to possibly overcome the politics that we are hearing about today.
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Greg Powell, CIMA
Email Greg Powell here
Fi Plan Partners is an independent investment firm in Birmingham, AL, serving clients across the nation through financial planning, wealth management and business consulting. Fi Plan Partners creates strategies in the best interest of their clients using both fee based investing and transactional investing.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.
Economic forecasts set forth in this presentation may not develop as predicted.
No strategy can ensure success or protect against a loss.
Stock investing involves risk including potential loss of principal.