Take a Look at the Bright Side
Worry and concern about higher interest rates this year tied to the high price of oil are the main reasons investors have been pushing U.S. stocks lower recently. Add to that the ongoing military campaign in Iraq, which the administration continues to fund to the tune of billions of dollars. There is no doubt the current climate is a bit contentious and fragile in spots. But it's not delicate in every area.
Let's look at some of the recent economic reports.
The leading economic indicators, which by definition look ahead into the economic health of the nation, are strong. The last report showed growth in the months ahead.
The services sector in the U.S. expanded at a record high rate in April, reflecting growth for the 13th straight month. The Institute for Supply Management said its index of non-manufacturing activity, based on a survey of top executives, was up 2.6 points from the previous month to 68.4. The services sector accounts for about four-fifths of the U.S. economy. And by the way, analysts had predicted a slight slowdown in April.
The recent factory orders report was amazing. Orders received by U.S. factories increased in March with the third gain in four months coming in well ahead of estimates - another sign the struggling manufacturing sector may be finally regaining its footing. Factory orders rose 4.3 percent in March, after a revised reading of a 1.1 percent gain in February.
First quarter earnings, as predicted, have been strong and many companies are actually raising their profit estimates for the remainder of the year.
The price of gas at the pump is a big sticking point. It's almost like having an added tax levied on us. But at the same time, it doesn't seem to be slowing us down any. I haven't noticed fewer cars on the highways. Rush hour is as crowded as ever. And the other day when I filled up, all the pumps were being used and I actually had to wait for one.
The jobs sector appears to be coming back month by month. And people are spending. Here's one example. The German athletic shoemaker Adidas Salomon recently released a running shoe that costs $250 a pair! And get this; the "Adidas One" will have a microprocessor under the arch of the foot that measures the compression of a runner's stride. The microprocessor will use that reading to move cables in the shoe, making adjustments around your foot to make sure the shoe is not too firm or too soft. We must be living in the future! Global populations living in poor economic conditions usually couldn't afford and wouldn't buy such a luxury.
Wal-Mart sales are higher, a huge summer of blockbuster films are about to hit the theaters, Best Buy is spending $50 million to enhance customer spending and the inventory of new homes in the U.S. is non-existent.
Let's try looking at the bright side occasionally and not linger on the negative. Even when the stock market is trading lower, you can make money. Even when interest rates go up, you can make a profit. Don't get me wrong. All is not well with the world. But also remember, it's not all bad either.
Originally published in the Outspoken e-newsletter.