Welcome back to our bi-weekly reading list series. Over the last couple of weeks, we’ve collected and circulated a number of articles that have struck our interest here at Fort Pitt Capital. Below, we highlight a few for our Ramparts’ readers:
Yahoo! Finance reporter Rick Newman weighs in on President Obama’s latest SOTU address. His article, “Sorry Obama, but nobody deserves ‘fair pay’ just for working hard,” touches on the ever-changing work environment and ongoing technological advances that are negating the need for certain employees. Newman states flatly that, “Employers don’t care how hard you’re willing to work, if you can’t do something they need.”
Another article of interest is Business Insider’s “The world got a major wake-up call from China.” The article examines China’s economic hardships (decline in Chinese Purchasing Managers Index, lower GDP growth, credit related issues) and their implications for the global growth recovery. The reporter says, “The data from China should not be taken lightly, and the US economy, contrary to prevailing opinion, is still in the same slow-growth zone that has characterized the last three years. The market is in for a tough period ahead.”
A recent column featured on ZeroHedge.com, “Anyone trumpeting a faster US recovery is playing the wrong tune,” analyzes domestic economic data and also questions how quickly the US will rebound. Although there has been a recent uptick in real GDP growth, the author looks at multiple factors (lackluster consumer demand, bleak labor-market conditions, etc.) and announces that any type of economic renewal will not be seen for years.
Lastly, from another Business Insider column, reporter Jing Daily highlights “8 predictions for China’s super-rich in 2014.” The column reviews recent studies showing that China’s high-net-worth crowd will continue to grow their wealth exponentially over coming years. Some of the predictions include where the ultra-wealthy will purchase luxury goods, and the industries from which they will derive the majority of income growth.
Check back soon for more articles of interest to our analysts and portfolio managers.