Welcome!

News Feed Item

"Made In The USA" Is Back

Why the Bull Market Stampede Continues

LOS ANGELES, Jan. 10, 2014 /PRNewswire/ -- The big story of 2014—and beyond—may well prove to be the very same big story as 2013. Research Analysts at RVW Investing LLC, a Los Angeles-based wealth management firm, point to what they call the American Manufacturing Renaissance as one of the key reasons to be bullish going forward. "Made in the USA"—a term that was written off just five years ago—has come back slowly but steadily. Investors have followed suit by revaluing American industrial companies, and driving a surge in profitability and valuations of petroleum and U.S. manufacturing companies. This run-up promises in turn to accelerate the nation's recovery from the global financial crisis. "There are several reasons for the great bull market of 2013 and why it shows every sign of continuing this year and beyond," says Selwyn Gerber, chief strategist and founder of RVW. "But the most frequently overlooked of these reasons is the remarkable renaissance of American manufacturing."

Due to a combination of structural advantages and timely macroeconomic developments, the U.S. has recovered faster and now is growing faster than other developed countries. For perspective, consider that the U.S. counts for roughly 5% of the world's population, but its Gross Domestic Product represents roughly 22% of the world's GDP. Add to that the fact that the U.S. stock market represents nearly half of the world's stock market value.

RVW analysts report that the three key drivers of this current growth are low energy costs, a culture of innovation and entrepreneurial spirit, as well as a growing and well-educated population:


ENERGY:

The historical worry that America's voracious energy demands pose economic risks that limit growth has never been less true. Thanks largely to fracking technology, U.S. domestic production of natural gas and oil has been ramping up (not down). In fact, in the next few years, the U.S. is expected to surpass Saudi Arabia as the world's top oil producer. As a result, U.S. energy costs are often a fraction of its competitors, allowing the U.S. to become the lowest cost producer for many products.





A CULTURE OF INNOVATION:

Major U.S. companies remain the most recognizable and desirable brands in the world. The top nine most valuable global brands (according to BRANDZ, the world's largest brand equity database) are U.S.-based companies. Apple and Google dominate their fields and are respected technology leaders, while people around the world drink Coca Cola and eat at McDonald's.





A WELL-EDUCATED POPULATION:

While many countries' populations are contracting, the United States is still relatively young and growing, largely thanks to immigration. The world's top students continue to flock to America's universities, and people from around the world seek to come to the U.S. because they see an opportunity to improve the lives of their families. From 1901-2012, a remarkable 350 of 853 Nobel prizes went to individuals residing in the United States.

Even the optimists, though, cannot ignore the fact that the global financial crisis left many scars. Many U.S. investors have taken a cautionary stance and are still underweight in U.S. stocks. A recent poll found that 59% say things are going badly in the economy (less than a quarter said conditions are improving). Even though U.S. stock markets have more than fully recovered from the crisis, RVW analysts believe U.S. stocks are going much higher, and that the great American recovery is continuing to gain speed and momentum.

TAURUS REIGNS SUPREME - WITH SPEED BUMPS ALONG THE WAY

Recovery from the global crisis is certainly not complete. Corporate earnings are strong and growing, but jobs remain scarce. For the moment, the country is stuck in a two-speed economy with consumers struggling while Corporate America booms.

Most technical indicators point to growth. De-leveraging held back spending in recent years, but debt is expected to be less of a drag going forward. U.S. housing is rebounding from the collapse, which has improved homeowners' balance sheets.

While many had feared the U.S. Federal Reserve's "taper" of quantitative easing, that has turned out to only cause a minor blip because inflation and interest rates are low and are likely to stay low. As of November 2013, annual U.S. consumer price inflation was just 1%. The U.S. dollar remains the world's reserve currency (the Euro, once thought to be a challenger to the title, is currently little threat), and foreign investors still favor the U.S. for their investments.

Many believe this recovery is healthier because it is being led by the industrial sector rather than by consumer spending. Organizations tried to stay lean during the crisis, so the average age of fixed assets used in manufacturing necessarily rose. Therefore, upgrading is needed and increased investment and capital spending on manufacturing equipment should provide additional growth. Many recent projections from the captains of industry accordingly call for increases in revenues, profits, employment, and spending in coming years.

To really appreciate the untapped potential of the American economy, it's crucial to understand that the world is currently experiencing the third great Industrial Revolution. The first revolution (roughly 1750-1830) included James Watt's steam engine advances, plus farming and textile improvements. The second revolution (roughly 1870-1900) included Thomas Edison's invention of the light bulb, the adoption of electricity, the internal combustion engine, and running water. Our current third revolution began roughly in the 1970s with Intel's microprocessors and advances in silicon. This revolution (including advances in computers, the internet, mobile phones, and social networks) is impacting the costs and efficiency of businesses of all sizes.

RVW analysts point to legendary investor Warren Buffett, who argued recently that the U.S. isn't an economic powerhouse because Americans are smarter or work harder. Rather, the key to U.S. economic success is its democracy and capitalist economy. Buffett noted, "We have a system that unleashes potential, and it's just starting."

Mr. Gerber concludes that the fundamentals are in place for last year's manufacturing renaissance to continue to thrive through 2014. He adds that, even though inevitably there will be some dips, "Investors who still think it's 2008 do so at their own financial peril."

www.RVWinvesting.com  phone: +1-310-945-4000

SOURCE RVW Investing LLC

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
SYS-CON Events announced today that Bsquare has been named “Silver Sponsor” of SYS-CON's @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. For more than two decades, Bsquare has helped its customers extract business value from a broad array of physical assets by making them intelligent, connecting them, and using the data they generate to optimize business processes.
SYS-CON Events announced today that ReadyTalk, a leading provider of online conferencing and webinar services, has been named Vendor Presentation Sponsor at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. ReadyTalk delivers audio and web conferencing services that inspire collaboration and enable the Future of Work for today’s increasingly digital and mobile workforce. By combining intuitive, innovative tec...
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
SYS-CON Events announced today that Pulzze Systems will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Pulzze Systems, Inc. provides infrastructure products for the Internet of Things to enable any connected device and system to carry out matched operations without programming. For more information, visit http://www.pulzzesystems.com.
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
WebRTC adoption has generated a wave of creative uses of communications and collaboration through websites, sales apps, customer care and business applications. As WebRTC has become more mainstream it has evolved to use cases beyond the original peer-to-peer case, which has led to a repeating requirement for interoperability with existing infrastructures. In his session at @ThingsExpo, Graham Holt, Executive Vice President of Daitan Group, will cover implementation examples that have enabled ea...
The Transparent Cloud-computing Consortium (abbreviation: T-Cloud Consortium) will conduct research activities into changes in the computing model as a result of collaboration between "device" and "cloud" and the creation of new value and markets through organic data processing High speed and high quality networks, and dramatic improvements in computer processing capabilities, have greatly changed the nature of applications and made the storing and processing of data on the network commonplace.