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
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his Day 2 Keynote at @ThingsExpo, Henrik Kenani Dahlgren, Portfolio Marketing Manager at Ericsson, discussed how to plan to cooperate, partner, and form lasting all-star teams to change the...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
In his session at 20th Cloud Expo, Mike Johnston, an infrastructure engineer at Supergiant.io, will discuss how to use Kubernetes to setup a SaaS infrastructure for your business. Mike Johnston is an infrastructure engineer at Supergiant.io with over 12 years of experience designing, deploying, and maintaining server and workstation infrastructure at all scales. He has experience with brick and mortar data centers as well as cloud providers like Digital Ocean, Amazon Web Services, and Rackspace....
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
"I think that everyone recognizes that for IoT to really realize its full potential and value that it is about creating ecosystems and marketplaces and that no single vendor is able to support what is required," explained Esmeralda Swartz, VP, Marketing Enterprise and Cloud at Ericsson, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry’s single source for the cloud. Fusion’s advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including cloud...
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
SYS-CON Events announced today that Cloud Academy will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloud Academy is the industry’s most innovative, vendor-neutral cloud technology training platform. Cloud Academy provides continuous learning solutions for individuals and enterprise teams for Amazon Web Services, Microsoft Azure, Google Cloud Platform, and the most popular cloud computing technologies. Ge...
The best way to leverage your Cloud Expo presence as a sponsor and exhibitor is to plan your news announcements around our events. The press covering Cloud Expo and @ThingsExpo will have access to these releases and will amplify your news announcements. More than two dozen Cloud companies either set deals at our shows or have announced their mergers and acquisitions at Cloud Expo. Product announcements during our show provide your company with the most reach through our targeted audiences.
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo 2017. The @DevOpsSummit at Cloud Expo New York will take place on June 6-8, 2017, at the Javits Center in New York City, New York, and @DevOpsSummit at Cloud Expo Silicon Valley will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Outlyer, a monitoring service for DevOps and operations teams, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Outlyer is a monitoring service for DevOps and Operations teams running Cloud, SaaS, Microservices and IoT deployments. Designed for today's dynamic environments that need beyond cloud-scale monitoring, we make monitoring effortless so you...
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain.
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.