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Our economic recovery has not been a smooth,
quick ride. Bad news, like the unruly passenger being
removed late in the night, has unexpectedly stopped
progress at times.
The good news from the conference is that there
was a positive consensus on the U.S. economy. The
panelists pointed out that we still have all of the
elements for strong growth.
American consumers and businesses alike are
saving more and improving their balance sheets. This
sometimes painful deleveraging process is making our
growth more sustainable going forward.
Low rates on bonds and bank accounts have
people looking elsewhere for growth and income. Even
Bill Gross, possibly the world’s largest and
best-known bond fund manager, suggested that people
look to stocks for real income.
It was noted that U.S. companies have great
cash flows, quality assets and money in the bank that
will keep them from default. With their finances in
great shape, U.S. company bonds are very safe, and
their dividend-paying equity is only more attractive.
It is a slow journey we have ahead. Just like
Amtrak’s City of New Orleans, there will be slow
stretches and unexpected stops; faster moving trains
may pass us, but our economy will keep rolling ahead.
http://newper.blogspot.com
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