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The current economic environment is tough.  This fact is not lost on most people.  It has certainly been on the minds of many, and it undoubtedly loomed large in the November 4th election. 

This environment also provides investors with a unique opportunity.  The U.S. economy has had several recessions since 1945.  But these periods have all been two years or less.  Overall, the U.S. economy has been in recession for roughly 14% of these 63 years.  This means that even our oldest investors have very little experience at this.  Even an 83 year-old has had only 9 years in this type of environment.

Determining which companies will suffer and which ones will thrive, both now and when the economy turns upward, is the problem they are attempting to solve.  Add to this, the proliferation of new industries that have not faced a down economy, and the “math” becomes even more challenging.

Many of the outcomes will seem so obvious with hindsight.  “They had a differentiated product or service, a demonstrable and proven ROI for their customers, and a large and growing market.  Of course they succeeded!”