We live in interesting times. On one hand, US inflation is low, unemployment is improving (and looks better than that of many other countries), US GDP is growing, m&a values are increasing, and m&a transaction volumes are robust. We’re busy. On the other hand, the Russians are in Georgia and Ukraine (Moldova and Estonia are nervous), ISIS is taking over big parts of Syria and Iraq (and beheading Americans), drug cartels seem to have taken over big parts of Mexico, Boku Haram is kidnapping young girls in Nigeria, Hamas and Israel are threatening to restart missile strikes, Libya, Iraq and Afghanistan are in turmoil, and Al Qaida is everywhere threatening everyone. The Iranians are still building nuclear capabilities, the Syrians are still gassing their own people, and India and Pakistan are still threatening war. The Chinese are still expanding influence in Southeast Asia, South America, Africa and flexing muscle near Japan.
At home, at least 50,000 unaccompanied children have been caught so far this year crossing our southern border – trying to escape poverty and violence. Americans in the top one-tenth of one percent have quadrupled their wealth, while those in the bottom two-thirds have seen declines and are not happy, and about 10 million Americans are looking for meaningful work. Race relations are not at their best. Our national debt is up to $17 trillion (excluding Fannie Mae, Freddie Mac, unfunded obligations for Medicare, the Post Office et al.), and our debt is growing at about $1 trillion a year. Democrats and Republicans in the US Congress can’t agree on what color to paint the walls, much less how to tackle these issues or the host of other issues facing the country: immigration reform, tax reform, Social Security reform, healthcare reform, Guantanamo, gun control, and the Defense budget. I’ll stick with m&a; it’s doing fine… for now. According to Dealogic, August m&a volume was $210 billion – the highest August on record. Year-to-Date US m&a is running at the highest levels since 2008.
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