Every day I make little notes of investing ideas that come to mind based on what I see and hear. When I sit to write my weekly column, I draw on those notes which often cover more than the traditional interest and inflation rate news. Today I thought I would just open my notebook and share a few quick ideas that I have jotted down as I contemplate investing in 2023. These are straight out of my notepad in no particular order.
Employees have become spoiled. With high tech leading the way, benefits have gotten out of control. A tech friend told me he can’t hire anyone unless he offers free food, video game rooms, a gym and a cappuccino station. Yet many major High-Tech companies struggle to produce the earnings Wall Street has traditionally sought. I think a day of reckoning is approaching which will include battles with the labor force. Keep an eye on Elon Musk as he attempts to make Twitter profitable, starting with a massive reduction in its staff. If he can pull it off other publicly traded companies will be pressured by shareholders to follow suit.
China has become more aggressive recently and its leader has openly said the states’ future will value world influence over economic growth. If this attitude continues it may not bode well for U.S. companies with major workforces in China. I will be interested in those companies that are proactively moving production plants to more economically friendly and politically compatible countries.
I can say from personal experience that people are vacationing again. Airlines are full, theme parks are packed, and European cities are overrun. At the same time, there is a general feeling that people are getting sicker more often than they used to. There seems to be a growing need for vacationing experiences that avoid so much public exposure. We have long invested in the travel industry, but I get the feeling that there may be opportunities growing in the upper segment where families can feel a little safer and a little more private.
In a very public way, the Disney corporation has succeeded this year in producing two major, and very expensive, box office failures. In Bob Igers’ return as Disney CEO last week, he pointed out that while the company will maintain its core beliefs, they have an obligation to “Respect their Audience.” In our highly charged political climate, many businesses have pushed social issues at the cost of alienating their customer base. I believe the tide is turning here and in order to succeed well, companies will have to return to providing quality products and services while leaning away from aggressive political stances. Let’s see which ones lead the way in “Respecting their audience” going forward.
These are just a few of my many thoughts as I look to what might benefit investors in the future. I would love to hear some of your ideas. Please send them to the email below and maybe I will address them in a future column.
Dan Wyson, CFP® is author of “The Gold Egg,” and “21 Financial Myths” and owner of Wyson Financial/Wealth Management 375 E. Riverside Dr. St. George, UT 84790 – 435-986-9525 – Securities and Advisory services offered through Commonwealth Financial Network, member FINRA/SIPC, a registered investment advisor dan@wysonfinancial.com.
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