Earnings Will Soar

August 7, 2009
More than 75 million Americans began retiring last summer. And as a result of the ferocious 2008-2009 economic collapse, for thousands of them, retirement began a lot sooner than expected. Overall, jobs in the economy are being lost by the millions. See any winners here? I do, and big winners they will be. Large blue-chip American exporters will soon be in the catbird seat. As worldwide demand slowly begins to build momentum, U.S. exporters will get back on track. Not only are raw material costs low and interest rates (borrowing costs) low, but this cycle the labor component of costs will be greatly reduced. Now will come the downside momentum in the U.S. dollar caused by the overprinting of U.S. dollars at the Federal Reserve. A weak U.S. dollar, everything else equal, makes the price of U.S. goods cheaper and thus more competitive on world markets. This combo will serve to fuel a mighty rebound in exporters’ bottom lines. Many of the probable winners have a really good record of increasing dividends as earnings advance. It is this group of companies that we most favor at Young Research and at my family investment management company, younginvestments.com. Over the coming year, my monthly strategy report will highlight the winners for you. Please join us.