A Troublesome Undercurrent


February 10, 2020

My Dear Reader,
With the acquittal of President Trump about a week ago, it seems as though American politics is returning to some normalcy for at least a while. That normalcy, mind you is a little warped in our age. With chaos at the Iowa Caucus Adams about socialist taking a lead in the Democratic primaries, it seems more likely than ever that President Trump will win his second term. Most election specialists predict that so long as the economy holds out, Americans will not have enough reason to vote in either a radical or Joe Biden. But just how stable is the US economy and Market right now Poshmark normal indicators, such as GDP growth and job numbers would indicate that we should feel very good about our rebounding economy. In fact the average amount of hours worked has decreased down to just over 34 per week for the average American.

What about the factors we don’t consider? It’s what I might be a little worried about as we head into 2020 proper. First of all, although companies are starting to shift away from China, including Apple and Nike, the United States is still heavily dependent on China for construction materials. With the extended holiday and Coronavirus, orders for things involving everything from screws to larger machine parts have started to back up, which leads to a scarcity and subsequently drives prices up. Add to this, the truck driver shortage in the United States is becoming more and more pronounced, and this has driven the salary of the average trucker up as well. This is a cause for concern and would make me worry as there are two developments that we can extrapolate from. Not necessarily now, but in the future we could see a consolidation in the trucking and shipping industry as the worker pool begins to shrink. This will also drive the cost of everyday products up for the average American.

Lastly Consumer Debt is also much higher than probably should be. There are many factors to consider here, too long for this article, but this has led to a low savings rate for the average American. This means that an economic stumble in a large market or two could swing the election harder to the left than any speech. With that being said, if God truly wants the United States to prosper, then I am sure we will be fine. And in the meantime, if you set up your private reserve strategy none of this should worry you at all.

To your creation and potential,
Kevin Prendiville