PEP - 7 Stocks I'm Buying The First Week Of May
2024-04-27 08:30:00 ET
Summary
- The near-closure of the Winnsboro TV factory in South Carolina highlights the global economy's interconnectedness as well as the pitfalls of trade barriers.
- Rising barriers to international trade, excessive government debt, and aging demographics are major headwinds to economic growth.
- The trade war with China has not resulted in a return of manufacturing jobs to the US and may hinder long-term GDP growth.
- Several of my recently purchased stocks reported solid earnings over the last few weeks and yet still sold off along with the market.
- I discuss the 7 dividend growth stocks on my buy list going into the month of May.
Yet another sign of the creeping decay of America's manufacturing base .
That's what the people of the sleepy, historic town of Winnsboro, South Carolina thought when they heard that their town's television factory -- the last of its kind across all 50 states -- would soon shutter and lay off 126 of its 134 full-time employees.
Yet another American factory lost to foreign competition.
Or was it?
As we'll discuss below, the case of the Winnsboro TV factory does not really fit the traditional narrative of "industrial decay due to international trade" after all. And the misconception it represents will have consequences for the US economy in the long run.
In last week's article , I discussed three drivers of economic growth in 2024, which made me want to address some major headwinds to economic growth as well. Three, in particular, are top of mind:
- Rising barriers to international trade
- Excessive government debt and unproductive spending
- Aging demographics