5 reasons the US is a hot emerging market
An investing guru says America is about to see a startling industrial rejuvenation.
In an interview with the Journal's Jason Zweig, van Agtmael says the country is just embarking on an industrial revitalization. Most analysts are only starting to recognize this. If investors realized the scope of what's about to happen, perhaps they wouldn't have been so eager to get out of stocks over the last year.
Here are five reasons why van Agtmael thinks the U.S. is the next great emerging market, according to Zweig:
The U.S. is competing with China. Van Agtmael said that when he visited China last year, one executive complained about the competition from America. Part of the reason the U.S. is suddenly competitive is because labor costs in China have risen about 15% annually. And though American lawmakers are talking about raising the minimum wage, the cost of labor has been relatively flat.
U.S. is getting cheap energy. The country is seeing a shale oil and natural gas boom, as new technologies have allowed companies to extract previously unavailable oil from deep underground bedrock. "The availability of shale in the United States and around the world has to be one of the biggest game-changers I’ve seen in my career," said General Electric (GE) CEO Jeff Immelt, according to The Washington Times.
U.S. has better factory technology. Factories are incorporating three-dimensional printing, which can advance product design and prototyping, according to Gartner. It's already being used in car manufacturing and the medical and pharmaceutical businesses. And executives are bringing more robots into factories, automating tasks and making production more efficient.
The migration to the U.S. has begun. Some 200 companies have moved their factories to the U.S. from offshore locations, van Agtmael estimates.
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The author would like us all to feel better. Nice try, but reality does not show the US as a hot emerging market. Five reasons why-
Smaller pay checks
We are becoming more of an entitlement country
Just when we are becoming an emerging market, Obamacare is going to kick in and crush the small businessman. Yay!! epic fail all over again.
what a bull story!
what will emerge in USA? a new 3rd world nation?
the country is slowly dumbing down from weak education, manufacturing has left USA with just a few people left to turn off the lights.
from what my college continues to report, engineering enrollment continues to be low. from what i see at work, there ARE no new engineers.
So if the United States has 3-D printing, then wouldn't everyone else. Cellphones, who freaking cares about cellphones. Automation means less jobs and less folks spending.
If wages aren't rising, don't expect any real recovery. Regardless of how much Uncle Ben and the Global Feds print. This guy might be good at picking stocks, however he knows next to nothing about the economy.
Industrial rejuvenation... wait, I have to answer this text.... industrial rejuv... dang, another text. What was I doing again... indust... text... whoa, that's a good one, two guys just jumped... what's up? Why are you guys here... job? I'm supposed to make stuff... wait, another text...
YOU CAN FOOL SOME OF THE PEOPLE SOME OF THE TIME BUT BEFORE ANY INDUSTRIAL REJUVENATION, WE WILL NEED TECHNOLOGICAL COLD TURKEY.
oh please, where is this stuff coming from? i'll believe it when i see it. with increases in cost of food, transportation, insurance's & EVERTHING else, my net raises are negative. meanwhile my employer demands more and more from its emplyees. include that i am doomed as a woman, doing the same work as male counterparts and making 17% less. male/female, doesn't matter we're all reemed!!!!!!!!!!!!! i am so sick of hearing usa, usa when our beloved us is has become all about the wealthy and entitled. so depressing :(
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