Tag Archives: Michael Cochell

economy

Politics or Economics?

Within the last few years we’ve experience a major cross over between politics and economics. Is this a good or a bad thing? Many economists believe that more political intervention can negatively affect the natural growth of the economy. While others believe that the U.S. could not have survived the 2008 “great recession” without the government’s assistance. Nor, would we be able to sustain future growth unless we continue to have the governments support.

It’s obvious that our global economy is more involved politically but how much do we rely on our government relationships and policy to control our economic growth. I believe our society understands that we need government support in many aspects of our economy but when control becomes a liability, it certainly poses the question of when should the government pull back? As much as we rely on monetary policy to tighten or loosen our money supple, hence, increase or decrease growth in our economy, the political party battles is becoming more of a distraction. Hopefully, decisions that need to be made will be address in a responsible manor and actions will be taken in affect.

Recently, the United States government shutdown for the 18th time, this is primarily due to political party differences. Yet, another political battle between the Democrats and Republicans spark uncertainty in the markets. Although, government issues don’t seem to be directly affecting the markets at this time, it can influence institutional and individual investors to re-direct strategies short-term. Events such as this have become an ongoing concern and come October 17th we may have another issue regarding the debt ceiling. These political disagreements hopefully will begin to focus on what is needed to improve our society and economic environment. Rather than continuing to use situations such as these for political gain and finger pointing.

As a financial advisor, I meet with my clients on a consistent basis to review their accounts and investment strategies. During the last few years, I’ve noticed an emphasis on our changing government environment of the U.S. and less on saving properly for the future.  There has been so much noise about political and economic issues that we’ve missed some of the fundamental ideas of saving for retirement. Changes such as healthcare, entitlement benefits, inflation, and life expectancy are a major aspect of planning, but without having a responsible strategy of saving many investors limit their success for retirement.

Hopefully, as we move forward, the media, investors, and educators will focus on the importance of actions and responsible saving strategies. Working with clients, I find that having a well diversified portfolio that fits ones investment risk and time horizon is critical. However, continuing to stay focused on investor’s objectives through political and economic uncertainty has been more challenging within the last few years.

 

Michael Cochell  is associate vice president at Jacob Gold & Associates Inc.  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 decision

 

 

 

 

 

economy

What can the U.S. Count on for Future Growth?

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