Readiness is All

Many commentators are frustrated because their predictions of a recession early this year aren’t coming to pass. Not to mind, they insist. The upcoming downturn, while delayed, is not to be denied.

The number one culprit in the search for their error’s source has been the government’s economic stimulus checks. But the total cost of the program was $100 billion in a $15 trillion economy—less than 1%. And the sub-prime crisis has show us again that we can’t borrow our way to prosperity. So what’s the real source of our economic strength?

Exports have been on a tear. Agriculture, capital and construction equipment, technology, and services have been strong sources of domestic growth. Add to this the weak dollar, and we’ve seen foreigners buying US goods and services in droves.

This isn’t going to change over the summer. US companies have been marketing overseas for years, and now their efforts are bearing some fruit. A stabilizing housing and energy market should allow economy to continue to muddle along, with the improvement in trade serving as the engine.


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

Follow me on Twitter @GlobalMarketUpd

direct: 603-252-6509
reception: 603-224-1350

www.chartertrust.com • www.moneybasicsradio.com www.globalmarketupdate.net
By | 2014-09-03T20:20:31+00:00 July 25th, 2008|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

Leave A Comment