Column

Without question, July is one of my favorite months. It’s a time of simple pleasures, like bare feet on the packed wet sand of a Santa Cruz beach and feeling the silky wrap of front-porch-warm evenings. It’s also the month I celebrate the anniversaries of two of the happiest days of my life. Thirty-four years ago I scooped every other man alive by marrying the most beautiful woman on the planet and nineteen years ago she and I were blessed by the birth of a son who is, before our eyes, becoming a man of character of a sort that I aspire to.

Added to these, I share in the broader celebration with most Americans in the recognition of Independence Day—the fourth of July. Of course if you follow much of the media, you might be left with the impression that we have little to celebrate of late. Bad news sells, after all.

Ever contrarian, at ALIVE we do not share in the dire descriptions of our media comrades. Need a little boost in your patriotic pride for the American economy? Look no further than Damien Couture’s uplifting Market Watch article on page 49, as he does a terrific job in setting the record straight—when it comes to the economic engine of the world, America remains in front.

To be sure, we face a number of challenges these days, but we must remember that we have something of enormous power that we can depend upon to solve these issues—the “American Recovery Act.” Of course I’m not referring to the American Recovery Act of the billboard variety that politicians use to advance their personal agendas; the one I mean is the feeling in your gut if you are a person whose eyes still well when you hear our national anthem.

Our hope and our pride as Americans still come from the same place inside as it did for the great men and women who conceived this nation: That America is called the “United” States because it is, in the final analysis, a group united, ultimately made of collections of counties, then cities and towns, then neighborhoods, streets, homes, families and finally, freedom loving individuals.

Every July 4th we celebrate much more than our national liberation—we celebrate our independence as individuals as we enjoy the glorious blessing of freedom which our nation provides.

As I consider the many reasons why July is one of my favorite months, may God bless you and yours as you celebrate your independence. And may He continue to bless the United States of America.

It seems that the consensus opinion out there is that the U.S. is in decline, China is the new superpower and that our nation’s best times are behind her. We don’t “make” anything anymore. All of our jobs are being sent overseas. Sound familiar? This attitude is somewhat understandable given the financial crisis, severe recession, high unemployment rate, failed banks, bailouts, local and federal debt, housing bust, oil spill, etc., etc., etc. So yes, we have plenty of problems. However, there is plenty right with the good old U.S. of A. and the negative perceptions do not match up with reality. July puts me in a patriotic mood so read on.

The U.S. economy is still the largest and most productive on the planet. We account for about 25% of the world’s economic output despite only having 4.6% of the global population. Our economic output is larger than the next three largest economies (China, Japan, and Germany) combined. If you look at per capita income, China is only about 10% of that of the U.S.*

The U.S. continues to be a manufacturing superpower. Contrary to popular opinion, we still make a lot of stuff. In fact, we make more goods in a year than any other country. We are the world’s largest exporter. Yes, China exports more goods but that is only half the story. You have to also look at the export of services; things like accounting, data- processing, medical services, and telecommunications. When you add global service exports to goods, the U.S. tops all others. All together these exports totaled $1.5 Trillion in 2009, nearly 10% of the total globally. Germany ranks second with 8.5%. 1

The rest of the world continues to invest in the U.S. We are the preferred destination for foreign direct investment. Where did money flow during the financial crisis and just recently during the European debt crisis? This so called “flight to quality” went into the safety of U.S. government bonds. The U.S. dollar remains the world’s reserve currency. We lead the world in technology and innovation. We are at or near the top of scientific research institutions and corporate spending on research and development. Our higher education system is the best in the world and a top destination for foreign students. Over half of the world’s top global brands are American. *

I could go on and on but space dictates I stop here. All in all the U.S. is not a bad place to invest in, don’t you think? I sure do.

* Barron’s 6-7-10, Go Long America

Damien helps individuals invest and manage risk. He is a Certified Financial Planner™ professional and a principal of Walnut Creek Wealth Management. These are the views of Damien Couture, CFP® and should not be construed as investment advice. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. Not all recommendations are suitable for all investors. Each investor must consider their own goals, time horizon and risk tolerance. Your comments are welcome. Damien can be reached at 925-280-1800 x101 or Damien@WalnutCreekWealth.com.