A lot has gone on since the sequester came, and went with a whimper. Most notably, for me is that the stock market stayed the same, and Real Estate seems to be hot. Then we got the new unemployment figures this week, and it looks like another shoe is about to drop. Well, it may drop, but it won’t mean anything. We’ve got war with Korea on the horizon.
War with Korea would be very good news. If we could get that Korea thing settled, one way or the other, Asia would be better off. China seems to have come around to that way of thinking also. I have great faith in our trade capacity with Asia. We, especially on the West coast, have a lot to gain.
As far as Europe goes, I don’t really care. All Europe has done is make the US dollar that much more attractive. The emerging markets concern me, but I think they have made some in roads in capital flight that has also improved the US economy in terms of Real Estate.
Real Estate prices in India, China, Russia, and South America have quadrupled. A lot of those cash purchases in California are attributed to foreign investors. If you can sell off your equity in India, China, Russia, or South America, you can invest here for a smaller return, but a safe harbor.
Trade with Asia, and capital flight make me excited about our economy. All we need now is to increase manufacturing, which I think is coming. I think with the low returns available in the financial market there may be less risk aversion in things like building products here. We have everything we need to be a successful exporter of goods.