5 Biggest Worries Facing U.S. Investors
3. GDP growth below historical levels
GDP growth for the G7 countries has slowed to an average pace of 1% to 2% on a trailing basis in the past five years. That compares to 2% to 4% over the prior 15 years. China and other emerging economies, with a cheap labor force and rich in commodities, have buoyed the global economy. Going forward, China's economy is expected to continue to slow from the current 9.4% pace, not a good sign for global growth prospects.
4. Consumption turning into savings
One thing the recession taught consumers and businesses is to maintain a cash cushion. Companies have shored up balance sheets, and consumers are saving more. From 2008 through 2010, the average personal savings rate was just over 5%, a level not seen since the late 1990s. More recently, that rate has fallen, reaching 3.6% in September, but disposable income declined 1.7% in the third quarter (adjusted for inflation and taxes). Business and consumers need to start spending again if the U.S. economy is to grow again.5. Historically low levels of investment The stash of cash on company balance sheets is proof that corporate America isn't investing. To get the growth engine going, those companies need to reinvest in current operations, acquiring other firms or buying equipment. In addition, they could return cash to shareholders through dividend payments, and investors could spend those payouts.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV