Investors have a lot on their minds this fall. Between the impending fiscal cliff, European and Chinese woes and an election here at home, there’s a lot of unanswered questions holding investors back. But with worry comes opportunity. The American markets are trading at historically low price to earnings ratios. Many companies have large stockpiles of cash just waiting to be put to work. If we could only put these worries behind us, I think the economy has a chance to move ahead from the slow growth pace we are experiencing.
First we have to remove our worries. Fortunately I think the tides are turning. It’s all quiet on the European front with plans in place to offer support to countries struggling under their burden of debt. They are also working toward a closer banking union. We also tend to forget the obvious in China. While their growth rate appears to be slowing, it is still well above the activity level found here in the US.