What really stands out is the unbelievable dichotomy between corporate earnings and the "real" economy in the US. Unemployment is not declining despite the economic "recovery" that we've been in for the past 2 years, yet corporate earnings are very strong and companies are absolutely flush with cash. There's no clear explanation for why this is the case: economists on the left claim that the reluctance to invest and hire is due to the lack of customer demand, so the government should spend more; conservative economists blame economic uncertainty and anti-business government policies.
I don't have a strong opinion on this, but one of our partner company CEOs does. On the 2Q earnings call today, Caterpillar's CEO Doug Oberhelman was pretty clear as to why some businesses might be reluctant to invest in the US:
"Lack of clarity on a U.S. deficit reduction plan, trade policy, regulation, much needed tax reform and the absence of a long-term plan to improve the country's deteriorating infrastructure, do not create an environment that provides our customers with the confidence to invest."
It's frustrating to watch this play out - most large companies have a lot of money, and, with the right incentives, would want to invest in the US, and in particular in the types of jobs that would be great for LGOs and other manufacturing/operations people. I think that over time, the investment will happen, mainly because the US needs it to happen, and we will be in a good position to benefit when it does. But someone really needs to figure out what the right incentives are.