2012 was a smoother ride than expected for the markets. However, it was and will continue to be turbulent in the political arena. Hopefully, economics and politics will be able to work together and define a path that will create a stable environment for everyone. There are many exciting advances in different areas of our economy today that may provide positive momentum for us in the future. Some of those areas that investors may want to pay attention to is real estate, energy, and manufacturing.
Real estate in our country can have an impact on growth as well as how consumers spend. Including, not only the purchasing of new and resale homes but household items such as appliances, furniture, landscape items, and materials for home remodels. It’s been nearly 6 years of experiencing a decline in the real estate. Home owners and investors have been keeping an eye out for a change to a positive direction for real estate. Are we here yet? Based on some data from the S & P Case Shiller Index we are starting to see some stability in several areas of real estate. (The S&P Case Shiller Index is a leading financial service technology solution of data from the Federal Housing Finance Agency) source: Fiserv, Inc. This data indicates improvement and are expected to see housing grow for 2013 and 2014.
Energy is another sector that is improving and may provide the U.S. with opportunities for energy independence. This may help the U.S. harness a substantial source for oil and gas which can help control pricing. This is a great opportunity, however it will take years of continued research and development as well as technology improvements before the U.S. can benefits from these resources. With patience and technology enhancement in the next few years the U.S. has the potential to have the available resource of energy to support our country for decades. It can also create a profitable opportunity for exporting for the U.S.
Another area of improvement is manufacturing. The U.S. is on the brink of developing a power house in the manufacturing sector. We’ve seen many well known companies move a portion of their manufacturing back to the U.S. Some of these include companies like Airbus, Michelin, Starbucks, Dow Chemicals, Caterpillar, GE, and Ford Motor Company This is most likely caused due to an increase of labor cost and lack of stable energy source in places like China. We will continue to import and export resources but having more control of manufacturing in U.S. can provide improvements in employment, lower exporting cost, and over all benefits for the U.S. economy.
This information was prepared by Michael Cochell of Jacob Gold & Associates Inc. and is for educational information only. The opinions/views expressed within are that of Michael Cochell of Jacob Gold & Associates Inc. and do not necessarily reflect those of ING Financial Partners or its representatives. In addition, they are not intended to provide specific advice or recommendations for any individual. Neither ING Financial Partners nor its representatives provide tax or legal advice. You should consult with your financial professional, attorney, accountant or tax advisor regarding your individual situation prior to making any investment decisions