There is a lot of talk of the economy seeing a double-dip recession.
Many are worried over debt problems in Europe.
Personally, I don’t believe these types of views.
I do think that an economic expansion is underway in the United States.
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It may not be a strong expansion. It may be driven by government spending and see little job growth — but it is still an expansion.
In the global economy, outside of Europe I see little signs of a double dip.
Despite all of the worries about the Chinese economic bubble, all signs are that China’s exports last month grew 50 percent year over year ahead of the expected 32 percent.
India showed its strongest economic growth since 2008; Canada saw more than 6 percent growth in the first quarter and Brazil saw industrial production grow 17.4 percent year over year.
Much of the world is growing faster than the United States. Maybe these overseas stock markets have lagged because investors have sold during the euro crisis panic.
However, their outlook is much stronger.
I seriously doubt most emerging economies will dip back into recession.
In addition, there is no banking or debt crisis in India, South Korea or Taiwan. About 500 years ago, China and India were the two largest economies in the world making up 49 percent of the global economy.
They are now just recapturing this.
During the 1970s, Britain and the United States made shifts to Socialism. The result was that they lagged the global economy during this time period. I see the same ahead for the next 10 years.
If there is weakness in emerging markets because of the euro crisis and stock market declines, I suggest you use that weakness to expand your exposure to emerging markets.
About the Author: David Skarica
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