"There'll always be some sort of crisis facing any country, and the key is to find a way to fight through it and figure out how to prosper." That's a quote from Carl Delfeld, and he believes America will rebound.
And why shouldn't he? The market has crashed before, and America has pulled through time and time again. Sure, the USA appears to be in big trouble now, but what country isn't facing challenges? Try countrywide famine, drought, epidemics, and warfare ... It's not hard to find countries that have it much, much, worse.
To those who say that, "This is the end," please take a moment to look at the facts: America is an incredibly prosperous country and is still leagues ahead of many of the nations prematurely labeled as threats to America's global dominance.
To summarize Delfield, contributing editor of Investment U, here are the reasons he and many optimists believe America will find itself on track, once again, to a healthy and bullish future.
- Made in the USA: Despite what you may believe of China, America is still the world's leader in manufacturing. America is also the third largest exporter in the world and has the potential to increase that number (currently 2% of small and medium U.S. companies). This expansion presents enormous opportunity.
- Greater productivity per capita: "Although the United States population is about one-fifth the size of China, the American economy is still three times bigger."
- Above the fruited plains: America's contributes to 20% of global agricultural activity and has enough land available to significantly expand that number: America "has twice the arable land of China (which is 25% desert) and its farms are the most productive in the world."
- Energized: It may not always be green and easy to reach, but America has a very impressive supply of energy resources, including coal and natural gas. American also has more fresh water and clearer air than China -- profitable both in the short and the long term (think of the health-care savings).
- Show me the money: "America is still the No. 1 destination for foreign direct investment. On a cumulative basis, it has four times that of the United Kingdom and six times that of China."
- Free Market Value. The invisible hand of supply and demand seems to know few limits in America. "The market values of ExxonMobil and Apple alone are greater than the market value of the entire Shanghai stock market."
It has been said before; the current drop in share value is presenting a significant opportunity to buy into companies at discounted prices. If you are bullish on America, there seems to be no time like the present.
To help you get a perspective on the market's future, we've taken a look at S&P 500 companies experiencing insider buying in addition to institutional buying.
The "smart money" seems to think there's upside potential to these names. Do you agree?
(Click here to access free, interactive tools to analyze these ideas.)
1. American International Group
2. Motorola Solutions
3. Medtronic
4. Citigroup
5. MEMC Electronic Materials
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Becca Lipman does not own any of the shares mentioned above.