The Chinese market is suffering a slowdown, Latin America is imploding and “geopolitical threats are on the rise.” “The U.S. stock market is off to its worst start this year, yet many optimists believe the market will improve.”
Here are a few key factors that optimists believe will help Americans withstand current economic conditions.
1. Fundamentals are solid: The latest economic reports suggests that the American economy continues to look like the best house in a bad neighborhood.
2. Fewer Americans are drowning in debt: Consumers have been hard at work repairing their balances sheets.
3. Corporate America isn’t overly exuberant: Morgan Stanley sees little evidence that CEOs have overextended themselves into a situation that will create a bubble.
4. Big companies have also dramatically improved their balance sheets.
Of course there is no guarantee that the economy will continue to improved. “After all, few in 2006 thought the U.S. was about to enter its worst recession since the Great Depression.”