What Happened To American Business?
Ok what happened to American Business?
Just noticed a headline: 30 Year Bond Outperforms S & P 500.
Here is a graph:
What this means: Up until now we have had positive growth in the U.S. Economy. Now, look very closely to the right – the graph is flattening for the S&P 500 and consolidation and strength for the 30 Year Bond.
Do you know what this means? Yes, everything that we have all worked for in America, American Business, our Stocks based retirement or investment portfolio, gone.
You see, what we have always been told:
“The long term returns of the S & P 500 has always out performed and produced positive investment results…”
Now this is no longer the case and probably will be for the next 20 years. Analysts are not saying this, but what has happened since late 2008? Just what we are seeing today:
Decline of American Business.
Decline of the American job market – Basically, sending the jobs overseas.
Decline of the Housing Market. Bankfraud, essentially… Greed + Wall Street Gambling – Regulation.
A ‘no growth’ economy, over the past four years.
Corporations holding on to their cash.
In fact, the banks are holding on to the bail out money they received from the end of the 2nd Bush Administration through the current Obama Administration. And it looks like the laws aren’t changing if the current administration remains in tact.
Word on the street is that ‘niche investing’ is preferred. Meaning trusting that the S & P 500 will grow (positively) or frankly any other countries major business index for that matter is now not considered a winning proposition. Some countries economies yes, Americas no.
So what do we do?