Hi Everyone,

Sophia and I celebrated our birthday Sunday and wish to thank you for all of the well wishes. Heading into our special day, we had the gift of a rising market even though I thought the economic news was going to blow the candles right off our cake. Glad it didn’t happen.

Rather than focusing on the increase in our trade deficit, poor jobless claims data and a sharp increase in energy costs, let’s look at a couple of global trends.


The Global Economy
Keeping the Candles Lit

The global economy will continue to change and we will continue to look for the innovation and trends that should allow an average investor to not only participate but benefit as well.

Global Change – Rebalancing

China’s tremendous progress of the past three decades now means that 95% of Chinese villages have roads, electricity and running water. 700 million people still live outside Chinese cities and make their living as farmers. Their income, on average, is just 1/3 that of the average urban dweller. But rural income growth in China in the last two years exceeded urban growth for the first time in decades.

(Sources: Ivy Funds and Financial Times)

Great American Companies

Eaton Corp. was founded 100 years ago and makes hydraulic and pneumatic systems for industrial and mechanical uses. With $16 billion in revenue and 73,000 workers, the firm sells equipment in 150 countries and will now target $2 billion in sales in China by 2015. Reaching this goal would mean 60% of the company’s revenue would come from outside of the U.S.

(Sources: Ivy Funds and China Dailey)

Note: Individual company information is for educational purposes. This is not a buy recommendation.

Bottom Line: The above referenced economic data isn’t great for the American middle-class and it breaks my heart. I’m one of them too. But, my job is to show investors that you have a chance to improve your quality of life by participating in this global economy and celebrating America’s great companies. They are many.

Until next week,
Susan R. Linkous