Tuesday, January 12, 2016

Stock Values and China?


Global markets, world communications, clashing cultures, politics and all the rest. An open, competitive global economy is raucous, wild and for now, quite unpredictable. You bet! And we are seeing the results in the melt down of China’s stock market.

Many investors shudder at China’s situation and feel, evidently, that it will affect all markets everywhere. And so America’s stock exchanges react with thrilling drops in value! Well, that’s one way to get the blood pumping in the new, cold year!

It need not be so. And calmer minds know this.

The fundamentals of the American economy are sound. Labor markets are returning to sustainable growth patterns. More importantly, newly skilled labor components are entering the market and supporting employers’ requirements for a smarter, skilled staff roster.

The financial recession of 2007-2012 was a doozy. Its remnants continue to live on; there are components of the economy that still have not returned to healthy status. But the cautious note taken from that? Past health is not a precursor to what will be health in the future.

Simply put: the future holds entirely new things, standards and expectations for us all. Yes we must have housing; but no, the old standards will not likely stand. We will seek new standards that are not only sustainable, but also supportive of quality of life development. Social interaction of the family will be the focus. Private space for individual thinking, study and meditation will be provided. Interaction between indoors and out-of-doors will be highlighted. Aesthetic design components will be included. Location and transportation issues will be much more accommodated than in the past, that is, adjacency to shopping, work and social obligations.

These are the critical elements in housing that will dictate how Americans will choose their housing accommodations. Until then old housing stock will be targeted for refitting, demolition and replacement. The new opportunities will use land more efficiently, redraw commuting maps and challenge both interior design efficiency as well as utility consumption efficiency. Walking distances will be more important; reduction of family auto fleets will occur.

Such fundamentals will dictate many other factoids of economic measurement. China is a manufacturer of consumer goods for the world. That is what they have done for the past generation. They have a future of more of this, but remember the risks: consumer patterns change; manufacturing investments have shorter thresholds of time going into the future.

Change and adaptability are the by-words for the future.

You may scratch your head and wonder if I’ve been taking too many naps! But no. Think on this: England has been around for well over 1000 years. It is landlocked. It is surrounded by oceans. It has had a global empire now reduced to modest size. Yet it is a world leader in music, art, academic research, and culture. English people are bright and productive. They value life without drenching themselves in the glitter of snobbishness and visible baubles of success. They are down to earth!

Can we honestly say that about our own countrymen? I don’t think so.

Quality of life is a complex of issues. It defines who we are as people – as humans. I’m not at all sure America has done a good job of projecting us as models of excellence in this or any other department of life. Oh, maybe garishness is a model! And selfishness and greed. And wearing stupidity as a badge of honor: gun ownership without safeguards from violence; anti abortion and anti child care mentality; and so many other examples of this.

Quality of life is about developing a person’s potential. It is about self-sustaining happiness, creativity, appreciation of art as expression and communication, and valuing human life in all of its forms.

Now back to stocks. Stock values. China.

How do these relate to quality of life? Exactly? Does a currency value on stocks one day or one week matter to a lifetime of accomplishment and adaptability to productive change? Whose value structure are we using these days?

Oh, for a nap listening to Mozart’s Requiem followed by a good read. Now there’s a value structure that interests me.

And you?

January 12, 2015


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