U.S. – a look at what could go right

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There are not too many bullish investment reports around nowadays. It was therefore quite refreshing to read the latest communiqué by Liz Ann Sonders, Chief Investment Strategist of Charles Schwab & Co. Mindful of the obvious plights still facing the economy and the psyche of many individuals who are struggling, she wrote a contrarian piece, asking “what if a few things actually went right?”

The key points of the report are as follows:

  • The expectations bar has probably been set low enough to be easily hurdled as the big market rally may be indicating.
  • Not only is recession risk fading in the near term, a very positive longer-term story is emerging, even though very few are in tune (yet).
  • Investors have gotten used to digesting worst-case scenarios … maybe it’s time to ask what could go right.

She also highlights the following ten structural/secular positives that could make the next decade for the U.S. economy better than expected:

1.     United States versus fractured eurozone

2.     Demographics

3.     Flexible labor markets

4.     Cheap energy sources

5.     Low dollar

6.     Technological innovation

7.     Entrepreneurial activity

8.     Best universities

9.     Many of the best companies in the world

10.  Deep/liquid capital markets

Click here to read the full report.

Source: Liz Ann Sonders, Charles Schwab, October 31, 2011.

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