Although China has been in the headlines, it seems people the most worried about future US economic growth are increasingly focused on two things: 1) the strength of the dollar relative to other major trading currencies, and; 2) low energy prices. Apparently, folks no longer believe we can simply import and consume our way to prosperity. Further, low energy prices are causing all kinds of havoc for any number of people (and countries) who have lent money or amassed large stockpiles of cash in the past, and greased the global economy with their largesse.
To hear how some people tell it, the whole thing is circular and a veritable witch’s brew. Let’s just say the world has changed dramatically in a very short period of time. As anyone who has been in this industry long enough will tell you, we have always believed low energy prices and a strong dollar are good for growth. Apparently, not so any longer…Read On…
The opinions expressed within this report are those of John Norris as of the initial publication of this blog. They are subject to change without notice, and do not necessarily reflect the views of Oakworth Capital Bank, its directors, shareholders, and employees.