As part of my blog about new media in financial services, I enjoy writing about investment themes and trends from time to time. Primarily this blog is about using online new media tools and resources to become a more successful investor. I’ll have a new ebook coming out soon on this subject so you may want to sign up to reserve your copy of New Media Wealth – 25 Ways to Invest for Success in a Wired World.
I published a post recently about a new investment theme that I believe is emerging entitled “Buy America“. Very simply, as the economy continues to gain ground, investors will become more positive, and perhaps even enamored with American Companies. Why? This theme is about much more than simply owning a piece of America, it’s about our roots, rebuilding our pride and country, and becoming a part of something bigger than oneself. This is the type of investment theme that has the potential to gather a lot of enthusiasm and perhaps substantial money flows.
Not only does it appear that real estate is on the mend (at least Buffet thinks so), but it is becoming more evident that consumer confidence may have bottomed and that folks are accepting the idea of knuckling down and living within their means. In other words, we are learning how to survive in the new normal environment.
Perhaps a more important driver of this “Buy America” theme is witnessing companies like Ford and Home Depot making comebacks. For example, last month Ford blew away expectations with U.S. car sales jumping some 43%. Home Depot recently enjoyed it’s first quarterly gain in sales since 2006. It appears that American companies are indeed leading the way out of the global recession.
Toyota’s missteps certainly have not helped our perception of trust when it comes to foreign made goods.
A recent visit to the bookstore proved quite interesting when after months of nothing but gloom and doom book titles on the shelves of the business section, we’re finally seeing a couple of positive titles, including a very nice read about why capitalism trumps fear entitled
Bullish on America.
Finally, take note of the advertising that you see in financial publications and websites. In Saturday’s edition of Barron’s, there was a two page spread near the front of the publication taken out by State Street advertising one of their ETF’s, DIA, an investment in the Dow Jones Industrials Index. The title of the ad? “Invest in America, You’re Grandparents Did”.
Keep an eye on the big picture themes and trends, it can make you a smarter investor.
Buzz
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