A recent editorial appeared in the Wall Street Journal (12/23/2014) written by Bret Stephens. "The Marvel of American Resilience" focused on the extraordinary history of U.S. innovation that impacts the world at large. Recent examples he included were social media, mobile applications, cancer immunotherapy, and fracking.
History shows how American ingenuity and risk taking have been a steady source of economic and social benefits around the globe. Right now we find the combination of horizontal drilling and hydraulic fracturing revolutionizing the delivery of cheap oil. To quote from the editorial: "Fracking has now upended energy markets, pummeled petrodictators, confounded OPEC, forged deeper North American economic ties, slashed U.S. greenhouse-gas emissions to their lowest level since 1995, and sunk a nail into the coffin of most renewable energy schemes..." Consumers worldwide are enjoying a remarkable break in energy costs that enables them to redirect expenditures toward a higher quality of life.
For those of us old enough to remember OPEC manipulating oil prices in the U.S. and trying to dictate our foreign policy with supply disruptions, this is an unexpected treat. Meanwhile, countries like Russia, Iran and Venezuela who threaten regional or global peace, must focus more on domestic concerns.
Mr. Stephens concludes his editorial by reminding Americans of some important truths: "We are larger than our leaders. We are better than our politics. We are wiser than our culture. We are smarter than our ideas."
In the year ahead don't let your perception of life, this country, and our world be distorted by the media focus on disasters and upheavals. We are blessed to live in America, and the world's inhabitants continue to see us as that "shining city on a hill" referred to by a previous resident of the White House!
The views expressed are those of Lindsey Randolph and should not be construed as investment advice. All economic information is historical and not indicative of future results. All information is believed to be from reliable sources; however, we make no representations as to its completeness or accuracy. Discuss all information with your advisor prior to implementation.