The US economy is yet again reinventing itself. This has been helped along by a determination to get the US economy moving again after the global financial crisis, but the real drivers are an energy boom, a manufacturing renaissance and American innovation.
> Together these drivers could add as much as 0.5% to annual US economic growth in the decade ahead.
> For investors, while a return to the sustained double digit share market returns seen through the 1980s and 1990s is unlikely, the turn for the better in the US is likely driving a new secular bull market in traditional global shares.
The problems with the US economy are well known. Its level of public debt is too high, its spending on social security and health is unsustainable, its health system is woefully inefficient – spending more relative to GDP than most OECD countries but with worse life expectancy – its level of savings is too low, its transport infrastructure is becoming run down, its political system seems dominated by ideology and its share market has had a rough time over the last 14 years as the tech and housing credit booms burst.
Please click here to read the full article: The Us reinvents itself yet again – 25 February 2014