Look at what makes up the economy, such as labor, consumer demand and profits, and you can see the bull charging into the new millennium. Oh, that Asia. Investors in Asia took a lot of risks and faced the music. Even companies with clean balance sheets in Asia are delaying orders to the U.S. because of all the uncertainty.
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.