среда, 18 декабря 2019 г.

Trade Deals Will Ignite Business Spending — and Your Profits

Timor Invest
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Business confidence is at its lowest level since the financial crisis.

Many companies just don’t know what the future holds for them.

It makes sense. For more than a year now, business managers have battled an onslaught of headwinds:

  • The U.S.-China trade war.
  • Britain’s exit from the European Union.
  • The U.S.-Mexico-Canada trade negotiations.
  • Sudden pivots in Federal Reserve policy.

Each headwind would be daunting on its own. But collectively, these issues have sent business confidence to the low levels you see below.

Business spending is at its lowest level since the financial crisis. However, there’s good news here for savvy investors...

Because of this, business investment has faltered, and CEO confidence has been absolutely abysmal. And who can blame them?

That’s why many experts expect serious implications for the stock market in 2020, and not just in the U.S.

After all, the issues holding back business investment are global in scope.

Just as businesses have lost confidence domestically, a measure of the global economic climate shows that experts are about the gloomiest they’ve been over the past 10 years (the blue line below).

But more importantly, the expectation index (the green line) has fallen below the present situation index (the orange line) ever since trade issues emerged, indicating that the future looks worse than the present.

Business spending is at its lowest level since the financial crisis. However, there’s good news here for savvy investors...

However, there’s good news here for savvy investors who know where to look…

Don’t Fear the Boogeyman

Some of these issues are getting resolved, which will unleash a wave of pent-up business spending next year.

My colleague Ted Bauman wrote about them here.

In a nutshell, he mentions how removing trade obstacles will restore confidence.

So I urge you: Don’t get caught up in the fear. Confidence isn’t great right now, and that might sway you.

But there’s always opportunity, no matter how gloomy the outlook may seem. And Ted and I believe there’s an overlooked global opportunity here.

To profit from a global business recovery in 2020, we suggest buying the iShares MSCI All Country World Index ETF (Nasdaq: ACWI).

Not only will this exchange-traded fund (ETF) provide you access to U.S.-based firms, but also companies located in both developed and emerging-market regions.

Remember: As an investor, if you only focus on the U.S., then you’re missing half the picture. That’s because U.S. companies only make up about half the global market capitalization.

So it pays to think big.

Best regards,

Clint Lee

Research Analyst, Alpha Stock Alert

P.S. The tax-saving secrets you’ll find inside Ted’s Pay $0 Taxes have been used by some of the wealthiest and most successful people on the planet — from the legendary Rothschild family to President Donald Trump. Now you can use them too. To get your FREE copy today, click here.

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