WAIT FOR IT!

A few years ago, I wrote several updates around the reality of “onshoring”.  Many U.S. companies from steel to technology were bringing their manufacturing processing back home to the U.S.

That reality is now becoming more quantifiable.  In the first chart below notice “Nonresidential” Construction spending hit an all-time high in May 2023.  Residential construction took a slight dip because of interest rates going up over the last two years.  That will reverse now that inflation has been reducing.

That is impressive, but this next chart posts the “Private Manufacturing Construction”, i.e., onshoring spike up to almost $200 billion, the highest ever on earth.

Basic Econ 101 suggests our economy is on the verge of a tremendous expansion as jobs are being created, money earned, taxes paid, savings happening, and, of course, consumer spending.

Consumer Spending represents 68.3% of our entire U.S. economy (Source: JP Morgan Guide to the Markets, June 30, 2023).  So, likely no recession ahead and it is very possible that our $27 trillion economy will continue to expand and grow.

We will continue to thoughtfully, intentionally, and methodically invest existing cash and new deposits based on this outlook.

I’m interested in your thoughts, comments, and observations.  Feel welcome to call, email, or stop by the office and say Hi.

Respectfully,

James O. Lunney, CFP®

CERTIFIED FINANCIAL PLANNER™ Professional  

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.