Do Historical Trends Apply?
During the Great Depression, one product that always
seemed to move was scrap metal. As a commodity,
metal always has value. As in the case of the late
Great Depression of 1929, the
shipped a great deal U.S.
of scrap metal to
to help create their war machine. Japan
Fortunately, our world economy is now so inter-connected
that war with the
Pacific Rimnations is almost in-
conceivable.However, there will continue to be a strong
demand for scrapand raw materials such as iron ore.
1. Metal Today...Metal Tomorrow
Weakening Unions…Protectionism…NAFTA…and a
re-invigorated metals market.
Stock Investments: I like steel as a broad based
investment. The steel unions are on life support with little
chance of being revived anytime soon. For instance, US Steel
and AK Steel have both won major concessions from the unions.
(see beggars can be choosers)Look for this trend to continue
as unions are not always part of the solution but, part of
the problem. The days of wildcat strikes and walkouts are
over until the next full-scale military crisis. Whoever the
next President is, HE will have to re-evaluate NAFTA in
general. The Democratic Congress will jump on this band-
wagon, or face a backlash similar to the one the Republicans
received after W’s disappointing Presidency… At worst,
will getits own round of corporate welfare. America
will continually look for new rules which will protect U.S.
American manufacturing. This will weaken our NATO alliances
as did the Smoot-Hawley Act of the early 1930s. A weak dollar
exports. Stocks to watch: Olympic Steel U.S.
(ZEUS) or AK Steel (AKS) or U.S. Steel(X)or Cleveland Cliffs
Does AKS still have legs? You had better believe it!
After all, steel is fundamental to national security! Also,
several of the large rail operators are double-tracking!
2. Activities for Kids… Under-Indulgence v. Over-indulgence
According to the book The Fourth Turning (Howe, Strauss) we a
re seeing a group of young people who will change the meaning
of American youth. While some children will be under-indulged
and under-protected, look for a type of helicopter parent that
is constantly hovering around the children, doing too much as
opposed to too little. Kids who have been raised with Barney
…child on board car signs… and a strong sense for parents to
give the children every opportunity to succeed in life. It has
also redefined the role of parents…what a good parent is…and
what a good parent is not! In spite of tough financial times
ahead,parents will make sacrifices to keep their children
happy. Some parents are even willing to find every angle to
give their child the competitive advantage they need in life.
GIVE, GIVE, GIVE… WIN, WIN, WIN!!! Camps…
Activities… Study Skills Courses… Life Choices…
Entrepreneur Schools… you name it there are literally 1000’s
of niches that can be turned into legitimate business ideas.
P.S. Email or post the little things you are doing to make the
most of your money...or what you are doing to get more bang for
4. http://blogs.wsj.com/economics/2008/02/15/lessons-for-today-bank-panics-and-the- great-depression/
5. The Fourth Turning (Howe and Strauss)