Tag: business

Updated December 16, 2024. If you are worried about the world economy, you are not alone. We have watched as businesses and workers have struggled with the new regulations imposed by the COVID-19 pandemic. However, I believe that the U.S. will generate more wealth in the next two years under President Joe Biden than in the previous decades combined.

As many know, we have just added more US debt to the economy than the debt of World War I and II together. With President Biden, you may be asking me why I would make such a bold statement on the future of the US and the world. For the most part, I believe that many factors are setting up nicely for you to generate more wealth in the next two years. Let’s take a look at those factors.

Biden Signs Stimulus

On Thursday, March 11, 2021, President Joe Biden signed the passage of the $1.9 trillion American Rescue Plan. As he signed he said that the bill and the IRS will begin sending out payments as soon as the next day – Friday, March 12, 2021. 

All the markets in 2021 are going up. The Russell 2000 holds relative strength and is leading the indexes higher. Look at the other indexes in the stock market and in real estate. They are increasing rapidly because of inflation. But don’t be scared of rates yet. For this reason, I believe that this environment should be very favorable for stocks and other risk assets.

Rates Are Just Part of the Picture

If we examine the recent decline in the major indexes, we can see that the timing appears to coincide with a sharp increase in interest rates.

Updated September 18, 2024. Finally, the Federal Reserve lowered its key interest rate by a hefty half percentage point Wednesday, moving ahead with its first rate cut in four years and cheering markets that expected an emphatic move amid a softening jobs picture.

Updated June 22, 2022. On Wednesday, June 15, 2022 the Federal Reserve raised interest rates by 0.75%. This is the largest move the Fed has made since 1994. In the projections released after the meeting, the Fed expects to further raise interest rates to roughly 3.4% by the end of this year.

Watch Out For Volatility

However, numerous sources say it will not last. Berkshire Hathaway’s vice chairman Charlie Munger said on February 25, 2021, that the speculation in stocks will end badly. Furthermore, Morgan Stanley 2021 stock market outlook predicts that the market will see a lot more volatility in the second year of a new bull market that could be extremely unpleasant along the way.

US Printing Presses Doing Overtime

The US is constantly printing dollars with no end point target. In my opinion, ride it out for two years if possible. But be aware as long as the US money presses keep printing money everything will most likely rise. Likewise, if you feel you are missing out on a bull market and you want to get in, be careful and look at the technical analysis for each stock you invest in. Just remember that the market is most likely in a bubble in the long term it could be very unsustainable.

Everything I have just written above is true. But I understand your concerns if you are sceptical. If you pay attention to the news, they focus on negativity. Why do they focus on negativity? One simple reason: because it sells. 

Entrepreneurs: Rocket Up

However, in my opinion, people in the world, particularly in the US, these entrepreneurs and businessmen are just getting started. These people are launching new businesses, inventing new technologies, solving real world problems, and creating cutting-edge medicines. Previous generations would be astonished at our life in the 21st century.

I would argue that middle class Americans today are far better off than the wealthiest people from 100 years ago. For example, the middle class today have air conditioning, the internet, and medical care available every day. Travel is available if needed. As a result, I would say that the innovations the world has gone in the last 100 years have been breathtaking, to say the least. To clarify, I believe individuals will generate more wealth in the next two years. So let’s learn what people are doing so that you can increase your wealth as well.

Big Increases In Life Expectancy

The increase in life expectancy is amazing. More than one billion people have been lifted out of poverty. Take a look at the chart below of the increase in life expectancy that has happened in the past 150 years.

The increase in life expectancy has created the one thing that man cannot control and that is time. The addition of more time in a person’s life will have a dramatic effect. As a consequence, life expectancy will continue to increase the work output for individuals and for businesses. As a direct result, these individuals will see the opportunity that is presenting itself and generate more wealth in the next two years.

I believe the key here is time. If we increase the precious amount of time we have on Earth by twenty years to thirty years or more the results will be amazing. I say this because time has always been a limiting factor to bring things to fruition with businesses and technology. Please take a look at the chart below. Do you agree?

Launching New Businesses

I believe that the U.S. will generate more wealth in the next two years. Let’s take a closer look at this exciting arena of launching new businesses, inventing new technologies, solving real world problems, and creating cutting-edge medicines.

Chart of Number of Business Establishments Less Than 1 Year Old in the U.S.:

Look at the number of new businesses happening now. In March 2020, there were 804,398 new businesses that were less than 1 year old. This is an increase from the March 2019 figure of 770,609.

Small Business Survival Rate

50% of small businesses survive 5 years or more, while only 25% make it to 15 years or more. 20% of new US businesses fail within their first two years, according to the US Bureau of Labor Statistics. 45% fail during the first five years. 29% of small businesses failed because they ran out of money, while 17% failed due to a lack of sound business model and poor product offering.

In general, the small business success rate depends on a number of factors. One of the most important factors is to be passionate about your business. Then set goals and plan ahead. But always keep your mind open to new ideas.

The most essential plan of action is to do these three things very rigorously: budget carefully, be disciplined, and focus on the needs of your customers. By realizing this awesome opportunity to generate wealth and doing these necessary steps, you increase the chances of taking your startup business and growing it into a $1 million+ company.

Technology And Innovations

We all know about the astounding growth of technology companies. Elon Musk is perhaps one of the great innovators of all time. In the last year, from 2020 to 2021, Tesla stock has risen more than seven times. Intuitive Surgical is another one. In 2004 Intuitive was $6 a share. Now it is more $700 a share in 2021. If you bought these stocks they are awesome gains to have in your portfolio.

But the secret is to find these technology companies when they are just getting started. If you look at the real builders meaning the innovators, the entrepreneurs you will find that innovation is accelerating faster every day. For example, when the microprocessor first came out in 1971 it could hold about 2,000 transistors. However, now in 2021, the microprocessor can have more than 39 billion!

Prediction: U.S. Will Generate Great Wealth

I believe that the U.S. will generate more wealth in the next two years under President Joe Biden than in the previous decades combined. If you are not sure where to look, I highly suggest real estate. Billionaire Andrew Carnegie famously said that 90% of millionaires got their wealth by investing in real estate.

Also, if you haven’t read my blog on the How To Be A Millionaire By Retirement (and possibly work from home) check it out.

James 1:5 NLT

If you need wisdom, ask our generous God, and he will give it to you.

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Last Updated on December 16, 2024 by Financial Goodness