Multi-Unit Franchisee Magazine Issue I, 2013 | Page 83
a new release, corporate executives across
the country remained on the sidelines for
months awaiting the outcome of the election. This wait-and-see approach gained
epic momentum in the summer months,
we suspect, because of the moderation in
growth that showed up in third-quarter
earnings reports. State governments, too,
sat frozen, at least as it related to implementing key portions of the new health care
law, at first awaiting the Supreme Court’s
ruling last summer and more recently the
outcome of the election.
Then Hurricane Sandy, encompassing the Northeast just before the election, further impeded economic activity
in the short run. Given the confluence
of potentially important events, is it
any wonder that many economic statistics showed weakness in the third and
fourth quarters?
The market’s initial reaction to the election was swift and sour, though we think
investors overlooked a key point: at least
the election gave us a modicum of directional clarity—whether or not one likes
the direction. At least corporations and
municipal governments have a clearer idea
on what the ground rules will be for the
next two to four years. While the “fiscal
cliff” was still looming (as of this writing),
that too will be more fully defined within
a few short weeks or months. I strongly
suspect that in 2013—given the cash, the
demographics, and the underinvested nature of personal and institutional portfolios—activity will pick up.
Wishful thinking? Perhaps. Hopeful
thinking? Most definitely. While I don’t
discount the weighty issues that both the
lame duck and the freshly elected politicians must face, we’ve climbed Walls of
Worry before.
The fundamental pieces stacking up
are simply too compelling to ignore.
r t a s t ed s o g o o
Neve
d!
multi-unit
ble!
opportunities availa
For Franchise inFormation:
Vo oDooBBQfranchise.com
877-902-4BBQ (4227)
Carol M. Schleif, CFA, is
a managing director in asset
management at Abbot Downing, a Wells Fargo business
that provides products and
services through Wells Fargo Bank, N.A. and its affiliates and subsidiaries. She welcomes questions and comments at
[email protected].
Multi-Unit Franchisee Issu e 1, 2013
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