Salient to Investors:

Generally speaking, the stock market represents large corporations who can borrow cheaply from the bond markets and take advantage of low overseas tax rates. Small business can do neither of these things, despite being America’s most important job creators.

The National Federation of Independent Business says this about the state of small business:

    • It is much weaker than the stock market implies
    • Optimism is far from highs, and the outlook for business expansion is very negative. Much of that pessimism comes thanks to the government.
    • Sales remain weak and earnings are even worse.
    • Is not investing for the future.
    • Inventory rooms aren’t stocked for growth.
    • Demand for workers has been rising.
    • Do not have the ability to raise prices for goods.
    • Demand is a big problem, but the biggest problems are all tied to the government, led by rising health care costs
    • Borrowing is down and the lack of loan demand doesn’t bode well for the economy.
    • The dollar value of commercial and industrial loans is trending lower.
    • Banks are not excited to lend.

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