The Race Continues: Economic Growth vs. An Economic Tantrum

Our Summary of the Current Economy:

Since November 2016 the world economy has been in a race between two major forces:

  1. Economic Growth – Will the Trump administration succeed in replacing Obamacare and greatly reducing the tax burden on both the American consumers and corporations, to spur the American and world economy, or
  2. Economic Tantrum – Will a lack of activity on those two items above combined with any one of numerous potential “Black Swan” events create chaos in the global economy?

The U.S. Congress is grinding forward extremely slowly. Of course, it is refreshing to see the legislative process actually working again although the Democrats oppose everything regardless of the dire consequences to the average American.

The global economy has recently shown some signs of recovery but below the surface there are very negative forces which could result in a “Black Swan” event. The proverbial bottom line is that the outcome of this race is unpredictable at this point. My hope and prayer is that the American economy will “muddle through” like we usually do.

In these uncertain times, 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.