The Case for Optimism
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A list of Dan Richards’ previous articles appears at the end of this article.
Only a few months ago, economist’s doomsday scenarios caused widespread concerns that we were about to revisit the Great Depression.
That consensus view on the economy has shifted remarkably quickly, with a much more positive outlook for the immediate period ahead.
For example, see this article in last Saturday’s New York Times about a meeting of global central bankers: World Bankers Suggest Rebound May Have Begun
With a lessening of near term worries, the focus of concern for many investors is now shifting to prospects for mid- and long-term growth.
Two recent cover stories in the Economist and Business Week provide ammunition to reassure clients thrown off balance by some of the alarmist rhetoric about depressed economic growth for the foreseeable future.
The Economist: “Asia’s astonishing rebound”
First came the Economist. Its August 15th cover story talked about the remarkable resiliency of emerging Asian economies such as China, South Korea, Taiwan, Indonesia and Singapore.
The story describes the region’s phenomenal 20-year annual growth rate of almost 8% – and explains how stronger Government finances, a more solid banking system and lower consumer debt meant that the region is leading the way out of the current global decline.
Business Week: The case for OPTIMISM
This was followed by the August 24 and 31 issue of Business Week, with 24 pages devoted to reasons for being positive going forward.
The online version also features video interviews with upbeat assessments by the CEOs of Dow Corning, Eastman Kodak, Estee Lauder and Intuit – with only the perpetual contrarian Richard Branson as a dissenting voice.
Consider buying a couple of copies for your reception area, as light reading for arriving clients.