The European Economy:
Data coming out of Europe continues to reflect concern to anyone watching European economics or Global economics. It appears that many of the Euro countries’ economies have weakened significantly, including that of Germany, which has been the economic engine of Europe.
Brexit and the never-ending debate about how to exit is creating tremendous uncertainty for businesses. There will be unintended consequences from Brexit but the never-ending debate and inability to come up with a plan resulting in constant delays of a hard exit is probably worse than just leaving.
Because of the uncertainty, businesses are hesitant to make investments; consumers will diminish their purchases; and the result is a slowing economy. Combined with the turmoil in China, the turmoil in Europe will have a negative impact on the global economy. The United States, because of the 2017 Tax Act, will continue to have a strong economy but it will not be as strong as if the global economy was also humming along.
It is critical to remember that land is the source of all wealth. Every product that we humans consume originates with land. Not all tracts of land are equal in quality and portfolio management requires every investor to hold some cash for liquidity. But historically, long term the best investment is land.