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Leadership Crisis and Opportunity for Advisors

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Jun 16, 2010 7:47 pm

What will it take to unleash the power of the American economy? A powerful economic restructuring will eventually leave us stronger and more competitive - because American exceptionalism will prevail over corruption and failure.

Now is typically the time for small companies to burst forth with entrepreneurial vigor and create about 70% of new jobs. Large corporations are sitting on huge piles of cash. Economic uncertainty prevails.

When pioneers said good-bye and packed up their covered wagons and hit the Oregon Trail, they did end their journey with a trip to the local social services office. America's exceptionalism comes from opportunity and freedom, effort, consequences and personal responsibility.

Fortunately, economic forces are propelling us to an America more like the old days. When wealthy citizens are moving to states with low personal income taxes, and small business and big companies restructure to avoid the nanny state, the nanny state is exposed to market forces ( government shrinks).

In this environment, financial advisors will be leaders - as investment advisors, we'll help our clients own enough equity to keep up with things like inflation, devaluation of the dollar, increasing dividends that come from equity ownership and growth in the economy.

Here are a few positive trends:

1. Increasing disdain of taxation without representation (young people).

2. Exposure of government management ineptitude ( oil spill, economy, housing crisis).

3. Move toward " small is beautiful" (young people doing what they want, often small business).

I heard the folks on CNN last night attacking the president's speech. It appears the progressives getting closer to a point where they are prepared to eat their young.

Old conservatives are swimming upstream and spawning, then they'll die. About the time China realizes her limits to growth (quality of life) - young grilse will be swimming back upstream from the sea, ready to repopulate our rivers of ingenuity and freedom.

But it will take lots of hard work, investment and sacrifice for America to come back into her own light. Financial advisors will play an important role in the formation and stewardship of capital needed to sustain her success.