CATH - Changing Focus In A Changing World - Weekly Blog # 719
- The growing US debt will impact our children’s assets and the future value of what our grandchildren inherit. It would be prudent to expect taxes of all sorts to increase. Increased taxes will lower the reported earnings of companies and will probably delay dividend increases.
- YTD figures show the US market declining more than 5%, while Brazil is up +10%, Greece +8.5%, South Africa +6%, and Chile +6%. Five other countries have positive equity markets. We are also seeing positive fund flows into Western Europe, Japan, and Emerging Markets. This is probably not a short-term phenomenon.
- Winning companies and institutions will make progress by improving customer service. As technology will likely continue to lower the costs to manufacture and transport, the winners will have the attitude of successful service companies.
- The current effort of some governments to regulate an increasing amount of corporate activity through regulatory bodies will drive more investment into private companies.
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Changing Focus In A Changing World - Weekly Blog # 719