California Business Advisors

Interesting new insulation.....

Starting a new business or purchasing an existing one is not for the faint of heart. It requires a lot of planning and forethought, but it does not mean all who get into it are following the process. With a bit of luck and good feeling for the pulse of the community as to their needs, success can be at hand, provided you respond to challenges and react properly. I will start posting the road map in a couple of days.

Today, the Dow Jones had its second highest point drop in history. The fact that the market went up almost 1/3 since the new administration came to office did not validate its legitimacy of value gains. It was highly speculative and controlled by those who are working now to see it crash after small investor capitulated and got on board. Another scheme to transfer the hard earned savings of lower economic classes to the top 1% and they are going to succeed. Housing markets will inevitably follow. Business ownership, one that fits you, is a good answer to accumulate and preserve wealth. Again with one caveat, you enjoy that business you like to own and have some expertise in it or you can very quickly learn its nuances.

Business opportunity transactions seem to be on the decline this year. With Trump at the White House and a lot of uncertainty as to the direction of economy and potential for recession, a lot of buyers have become choosy and do Not want to risk with any business that does not display a clear financial success path. Added to this environment is the lack of liquidity in the hands of those who traditionally risk it all. Influx of cash coming in from India and China has decreased enormously due to political and economic reasons and tightening of lending standards have also contributed to that cash crunch.

The U.S. manufacturing index ISM rose to its highest level, 57.8%, since August 2014, according to a release published Monday. Production, employment and new orders all showed solid gains last month. Three key drivers behind the increase: a weakening dollar, rising global growth and a solid U.S. economy. Powered by SmartAsset.com The U.S. dollar surged to a 13-year high after President Trump's victory in November. Business owners became optimistic at the prospects of tax cuts..., fewer regulations and an ambitious plan to rebuild American roads and bridges. But hopes are cooling that Trump can get his major economic reforms done this year, which has sent the dollar down to pre-election levels. In June, U.S. consumer confidence fell to its lowest level since November, though is still high overall. Small business optimism also remains very high, though it too has dropped a notch since January. However, a weaker dollar paired with solid global growth plays well for U.S. manufacturers. A weaker dollar makes U.S. goods more affordable -- and attractive -- to foreign buyers. American manufacturing depends heavily on selling to international markets. In early 2015, the dollar rose at its fastest pace in 40 years. The sharp increase in its value caused U.S exports to decline. Weak demand for U.S. goods caused the American manufacturing sector to go into a recession in late 2015, which has since ended. Now global growth is picking back up as prices for commodities like oil are stabilizing and geopolitical risks are relatively low. The U.S. economy is also in good shape: It's added jobs for 80 straight months and grown for eight straight years, albeit slowly. A healthy economy boosts demand for manufactured goods. That backdrop has helped create more U.S. jobs. So far this year, manufacturers have added 55,000 jobs, much better than the 24,000 factory jobs lost over the same time last year.