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August 12, 2013

Lack of Confidence, Lack of Investment, Lack of Jobs

August 12, 2013

Lack of Confidence, Lack of Investment, Lack of Jobs

Since there are no significant economic fundamentals today I would like to review some online news items.  WSJ has one article saying “Alalysts See Enough Growth for Fed Pullback” and another saying “The dollar is stumbling as investors begin to question the strength of the U.S economic recovery.”

I am not implying that those two statement could not both be true but together they do paint a picture of uncertainty. The point is not simply that folks have differing views but that what exists at present is a high amount of uncertainty regarding where the economy is going.  Companies are holding massive amounts of cash and are unwilling to invest. Lack of confidence that investment will lead to ROI’s appropriate to risk leads to lack of investment which leads to slow growth in GDP and jobs.