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  81