Chart of the Week: Is America on the Verge of a New Golden Age?
As you’ve probably read by now, “Is America on the Verge of a New Golden Age?” was the theme of the 17th Annual Investment U Conference held this week in St. Petersburg, Florida. For the last couple months, we’ve asked Investment U subscribers and Oxford Club Members this exact question.
And the results are in.
As the chart shows, 62% of the people we polled are pessimistic about the direction we’re heading. They say that America has too many financial hurdles - huge federal deficits, poor manufacturing, renewed cold war tensions with Russia, gridlock in Washington - to overcome.
That leaves only 38% of people who are optimistic about the direction of America’s economy. And according to Chief Investment Strategist Alexander Green, those 264 optimistic votes are the ones who will see more profits.
In a recent article, Alex wrote:
“In my view, an optimistic investor is not one who blithely puts his faith in higher share prices. History shows that every bull market is eventually followed by a bear market. (And vice versa.) High long-term returns generally come with neck-snapping volatility.
“So the smart investor hedges his bets. He invests outside of equities. He diversifies his holdings. And he runs trailing stops behind his individual stocks.
“The savvy investor doesn't just hope for the best. He plans for the worst.
“The pessimist does only the latter.”
Today is the last day of the conference and we hope that the optimism of Alex and our other Editors has inspired investors to change their outlook on the market. After all, a sunnier disposition could lead to more money in the bank.