Thursday, December 1, 2011

Caution



In making judgements regarding the US real sector one must be careful not to be drawn in; that is, the considerable hype pertaining to events in the E-Z can be a distraction.  Key is to not let these become something more.

It is very easy to get caught up in the headlines and to gift more weight to matters of contagion than they merit. Our secret, past few months, is that we did not.

For example, in today’s ISM report witness the major improvement in the new export orders index.  Unlike the E-Z, we are not experiencing a significant contraction in foreign trade.  We have always been able to grow without Europe and we will continue to grow, with or without Europe.

Robert Craven

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