One Good Thing About the Recession?
As I’m writing this blog entry, I am seated next to a gentleman on an airplane who commutes between his two business locations, one in Florida and one in Michigan. He is traveling to Florida for business as he does most every week. I am traveling south to the studios of FOX Business News to be interviewed for a story that the network is doing on one of the financial planning strategies that I’ve developed.
As I was chatting with this gentleman, he told me business has never been better – surprisingly, he’s in the automotive industry. His company developed software that reprograms the computers that control your automobile with the objective of increasing performance and/or increasing fuel economy.
As I understood his business, he manufactures the chips that contain the software and the chip is installed into the car’s computer. While he’s always maintained manufacturing facilities in the states even though his products could be made cheaper in China, he stated this is beginning to change.
Now, he claims, he can manufacture these chips in the states for about the same price as in China. The US he says, as a result of the recession, is now becoming competitive even in manufacturing as far as his business is concerned.
Maybe that’s a good thing long term.
In my view, we are going to deal with what many analysts are now calling ‘the new normal’. The economic dynamics have changed and will likely continue to change for the next several years, destroying some industries while creating others.
Change typically does create opportunity. And, massive change may create massive opportunity.
It is my view that one of the keys to maintaining and creating wealth over the next few years will be studying these changes, looking for the opportunity that will be created and developing a strategy to capitalize on the opportunity.
Are you using an absolute returns* style of money management that could allow you to do so?
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Securities offered through USA Advanced Planners (Member FINRA/SIPC). Advisory services offered through USA Wealth Management. USA Advanced Planners and USA Wealth Management are affiliated companies. The opinions expressed herein are those of the writer and not necessarily that of the above noted affiliated companies. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Due to the fact that some of the information was obtained from third party resources, it cannot be guaranteed.
*Absolute return portfolios ideally look to generate positive returns whether the overall market is up or down. No investment strategy is 100% accurate. Investing in market related securities involves a risk of principal loss. Prior to making any investment decision, the services of an appropriate professional should be sought as investment related recommendations are dependent upon the personal financial situation of each individual investor.
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