American Business: Competitively Speaking, Still Top 3 in the World

America has always been one of, if not the most competitive country in the world. It can be seen through its athletes, its industries and all the way up to its CEOs which run the largest companies in the world.

IMD, a well-regarded Swiss business school, recently released the findings of its annual World Competitiveness Yearbook (WCY). Its rankings survey more than 4,200 international executives and measure how well countries manage their economic and human resources to increase prosperity.
They were quoted as saying, “Despite all its setbacks, the U.S. remains at the center of world competiveness because of its unique economic power, the dynamism of its enterprises and its capacity for innovation.”

The top three most competitive of the 59 ranked economies in 2012 are Hong Kong, the U.S. and Switzerland.

Holmes reminds us of what Henry Ford said a century ago, “What's right about America is that although we have a mess of problems, we have great capacity—intellect and resources—to do something about them.” Holmes believes strongly that this dynamic still exists.

Dividend-paying global resource equities should fare well and are a way to take advantage of a potential upturn in commodities. If America becomes a growth story once again, demand for commodities such as copper and oil will explode.

Holmes' team at US Global Investors believe there are many great American companies to invest in. Currently 47% of the S&P 500 stocks pay a dividend yielding more than a 10-year Treasury, demonstrating the resiliency and strength of American enterprises. This says a lot about the potential 'bubble' in bonds, along with the unexpected strength of US companies.


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