Confidence Game

Can animal spirits revive the economy?

That’s what many claim. They note before that consumers start to spend again, they’ll need to have confidence in their personal finances. By this reckoning, what’s needed is a massive infusion of cash into consumer’s pockets. Extra cash will encourage extra spending, which will get the economy back on track.

But that’s putting the cart before the horse. Confidence isn’t bolstered by a handout or some temporary make-work job. It’s encouraged by permanent, productive employment-where your skills are put to work and you can see that you make a difference. Real confidence doesn’t come from putting humpty-dumpty back together again. It comes from serving or healing or making things faster, better, and cheaper than ever before.

The result is a stable wage and assurance that your income can grow. This kind of “animal spirit” will revive the economy. But it doesn’t come from free money or happy talk. It comes from rolling up our sleeves and getting to work.

Douglas R. Tengdin, CFA
Chief Investment Officer
Hit reply if you have any questions—I read them all!

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By | 2017-07-17T12:35:23+00:00 April 17th, 2009|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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