Click here to close now.


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:


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.


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.


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.


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."  phone: +1-310-945-4000


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
SYS-CON Events announced today that has been named a "Bronze Sponsor" of SYS-CON's @DevOpsSummit Silicon Valley, which will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. provides open-source software ELK turned into a log analytics platform that is simple, infinitely- scalable, highly available, and secure.
SYS-CON Events announced today that MobiDev, a software development company, will exhibit at the 17th International Cloud Expo®, which will take place November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software development company with representative offices in Atlanta (US), Sheffield (UK) and Würzburg (Germany); and development centers in Ukraine. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobi...
According to Forrester, public cloud platforms are evolving, blurring the lines between Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS) in order to satisfy the needs of enterprises and widen their appeal to developers. In The Forrester Wave™: Enterprise Public Cloud Platforms, Q4 2014, Forrester evaluates the 16 most significant Enterprise Public Cloud Platforms and details how each vendor fulfills the 19 evaluation criteria points.
Today, we are in the middle of a paradigm shift as we move from managing applications on VMs and containers to embracing everything that the cloud and XaaS (Everything as a Service) has to offer. In his session at 17th Cloud Expo, Kevin Hoffman, Advisory Solutions Architect at Pivotal Cloud Foundry, will provide an overview of 12-factor apps and migrating enterprise apps to the cloud. Kevin Hoffman is an Advisory Solutions Architect for Pivotal Cloud Foundry, and has spent the past 20 years b...
Data loss happens, even in the cloud. In fact, if your company has adopted a cloud application in the past three years, data loss has probably happened, whether you know it or not. In his session at 17th Cloud Expo, Bryan Forrester, Senior Vice President of Sales at eFolder, will present how common and costly cloud application data loss is and what measures you can take to protect your organization from data loss.
The broad selection of hardware, the rapid evolution of operating systems and the time-to-market for mobile apps has been so rapid that new challenges for developers and engineers arise every day. Security, testing, hosting, and other metrics have to be considered through the process. In his session at Big Data Expo, Walter Maguire, Chief Field Technologist, HP Big Data Group, at Hewlett-Packard, will discuss the challenges faced by developers and a composite Big Data applications builder, foc...
The cloud has reached mainstream IT. Those 18.7 million data centers out there (server closets to corporate data centers to colocation deployments) are moving to the cloud. In his session at 17th Cloud Expo, Achim Weiss, CEO & co-founder of ProfitBricks, will share how two companies – one in the U.S. and one in Germany – are achieving their goals with cloud infrastructure. More than a case study, he will share the details of how they prioritized their cloud computing infrastructure deployments ...
DevOps delivers remarkable results. But does it help all of IT? Can traditional ‘mode 1’ IT benefit as much as innovative ‘mode 2’? How about the rest of your business? Or have you just shifted your bottleneck? And if so, what can you do about it? Improving dev and ops is necessary, but not sufficient. It often just shifts the burden sideways (e.g., to PMs, SQA, InfoSec, DBAs, NOC, etc.), upstream (to the PMO, Controller, Business Liaison, etc.), or downstream (to TechPubs, Service Desk, Traini...
Decisions about budgets and resources are often made without IT even having a seat at the table. As technologist we understand the value of DevOps - but do your business counterparts? If they don't, your DevOps initiatives could lose funding before they start. In her session at DevOps Summit, Jeanne Morain, Strategist / Author at iSpeak Cloud, LLC, will provide insights on how to bridge the gap between business and technology leaders. Attendees will learn prescriptive guidance on balancing wor...
Interested in leveraging automation technologies and a cloud architecture to make developers more productive? Learn how PaaS can benefit your organization to help you streamline your application development, allow you to use existing infrastructure and improve operational efficiencies. Begin charting your path to PaaS with OpenShift Enterprise.
The modern software development landscape consists of best practices and tools that allow teams to deliver software in a near-continuous manner. By adopting a culture of automation, measurement and sharing, the time to ship code has been greatly reduced, allowing for shorter release cycles and quicker feedback from customers and users. Still, with all of these tools and methods, how can teams stay on top of what is taking place across their infrastructure and codebase? Hopping between services a...
SYS-CON Events announced today that Machkey International Company will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Machkey provides advanced connectivity solutions for just about everyone. Businesses or individuals, Machkey is dedicated to provide high-quality and cost-effective products to meet all your needs.
Clutch is now a Docker Authorized Consulting Partner, having completed Docker's certification course on the "Docker Accelerator for CI Engagements." More info about Clutch's success implementing Docker can be found here. Docker is an open platform for developers and system administrators to build, ship and run distributed applications. With Docker, IT organizations shrink application delivery from months to minutes, frictionlessly move workloads between data centers and the cloud and achieve 2...
SYS-CON Events announced today that Interface Masters Technologies, provider of leading network visibility and monitoring solutions, will exhibit at the 17th International CloudExpo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Interface Masters Technologies is a leading provider of high speed networking solutions focused on Gigabit, 10 Gigabit, 40 Gigabit and 100 Gigabit Ethernet network access and connectivity products. For over 20 ye...
As enterprises capture more and more data of all types – structured, semi-structured, and unstructured – data discovery requirements for business intelligence (BI), Big Data, and predictive analytics initiatives grow more complex. A company’s ability to become data-driven and compete on analytics depends on the speed with which it can provision their analytics applications with all relevant information. The task of finding data has traditionally resided with IT, but now organizations increasingl...