Uncertainty is one thing, actual events are another. To be sure, some companies have taken earnings hits recently. However, the Pacific Rim s governments are adopting reforms, so this won t be a recurring problem. A lot of focus has been put on the tight U.S. labor market sucking up corporate profits as big businesses shell out more money to retain workers. While it s true the labor market is historically tight, it s more liquid than one would think.
Companies can train employees and people can switch professions into something more lucrative.
Also, companies can hire in Laos or Ireland, where labor is much cheaper and the supply of workers far outweighs demand. If Asia continues to tumble in the near future, the Fed won t raise rates, because the economy would have cooled off on its own. Technology allows companies to make products almost anywhere while cutting costs, so there is no reason why growth cannot continue over the next several years. And the infusion of more technology in the workplace means more sales for technology companies.