An Economic Story

To make a long story short – What stocks should you look for in a world of slow growth and stable or easing prices?

The same sort of companies that have done well in the past in this climate. Companies that not only out pace their competitors in both revenue and profits, but continue to grow whether the economy expands or not.

Look for companies that are dominant in their markets, possessing good and stable management teams, that generate enough cash internally to finance growth without having to depend on banks, the bond market or stock sales to raise capital.

If you want to engage in the financial fantasy of having a half a ton of hot steel between your legs, try a Harley – Davidson.

Some companies do well in the face of slow economic growth and easing prices, and it’s a safe bet that they’ll continue to do well in the future – deflation or not. There are plenty, so don’t panic. Deflation is not a reason to sell, it’s an opportunity to buy things cheap.

                …….stay tuned for the rest of the story…….