Academic-Capital

The word “economy” is on everyone’s lips.   Things are looking bright for those who have a stake in the economic system. Markers in the service and manufacturing sectors are progressive and provide opportunities to put people to work while lowering the nation’s growing income disparity. The new economy offers the possibility to resize an unbalanced ship so that it finds benefits in hydroplaning to new levels.  The Institute for Supply Management’s non-manufacturing index increased to 58.7% while sixteen U.S. non-manufacturing industries led by construction and education also experienced growth ( 1 ).   To complement this growth the service sector also realized expansion adding further strength to the recovery and providing higher levels of employment. According to the Commerce Department manufacturing also received positive growth numbers ( 2 ).   The U.S. is moving into a stronger competitive position that furthers its ability to maintain momentum. Manufacturing increases

Fitch Ratings released a report entitle Mapping a Subpar Economic Recovery: What Can History Tell Us? that details the differences in historical economic recovery and growth.   They analyzed various recoveries in countries like Germany, U.S., U.K, and Japan and found similar trends that define these recoveries. Many of the eras of recovery saw the wealth effect, lower inflation and interest rates, higher government spending, new technology, changing consumer preferences, global competitiveness, trading relationships and currency effects. Today’s recovery has some unique differences that challenge basic economic assumptions.  Interest rates are at historic lows and have been for some time. It is not believed that continued low interest rates will add much more to the economy. The same can be said of the stimulus policy. Each of these naturally has an influence on growth but can become increasingly burdensome after their initial shock impact.   Exports often rise during a r

The economy looks bright for much of the next year according to the Conference Board, Bloomberg’s poll of leading economists, and the International Monetary Fund. After a prolonged decade of slow down any positive market news is welcomed. However, with increases in multiple measurements one can get a better feeling for growing trends and how those trends will impact national investment opportunities. At present, the market appears to be increasing in growth and opportunity for both the U.S. as well as other nations which could encourage further growth. The Conference Board used broad based measures that included the labor market, interest rates, factory orders, stocks price, and construction. The Conference Board’s Leading Economic Index for the U.S. rose .8% in March to 100.9 indicating a substantial increase in the U.S. economy ( 1 ). The economy has put away its winder mitts and gloves and significant improvements in the market are possible. The Conference Board was n