Weekly Insights from Sol Berkoff
Principal at Charleston Capital, Inc.
GDP growth for 18Q4 was announced on 2/28. It came in at 2.6%, slightly higher than expectations.
Two days earlier, on 2/26, state-by-state GDP growth for 18Q3 was announced. Although performance was strong overall, some states did a lot better than others.
As all of that dark blue makes clear, states west of the Mississippi generally saw the strongest growth. That has been the case for the last few quarters.
At Charleston Capital, we get a lot of questions about the “business cycle”. There is no doubt the US economy has been on quite a run and eventually there will be another recession.
We think prudent underwriting and proper pricing are the building blocks of smart lending. But finding the states and even counties that are outperforming is a smart way to generate volume and to minimize defaults. Small business finance is one of the few ways to gain direct exposure to these states and counties.
Our industry is one of the few ways to get long Utah.
Is anyone doing good business in the heartland? deBanked just did an article on this subject: