A “new” New World

by Laura Ehrenberg-Chesler on October 29, 2009

in Credit Crisis,Employment,Investment Strategies

 Many of us are familiar with the structural problems that are confronting the United States: 1) High unemployment, 2)huge federal deficits, 3)falling dollar could cause interest rates to go much higher, 5)the strain of the aging Baby Boomers on our social welfare system.

While these issues may cause the United States and some of the other “old world” countries to have stagnant economic growth, the “new world”, or what we used to call the developing world, is not faced with many of these challenges.

The New World countries have younger populations stiving for a higher standard of living.  They were not caught up to the same extent in the financial crisis of 2008, and have implemented stimulus programs that have actually served their intended purpose; to stimulate their economies.

This “new” New World may in fact provide support for the US economy, and therefore provide the underpinnings for a major secular bull market.

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