Frank Trotter, executive vice president of EverBank Financial Corp. and president of EverBank Direct, never sees a glass as half empty.
“We think the glass is always full because the glass is always full of air,” Trotter told the Association for Corporate Growth’s North Florida Chapter on Thursday.
Speaking on global markets at a luncheon in the Terrace Suites at EverBank Field, Trotter said there are several positive signs in the economy: stock prices have been rising, unemployment is going down and the gross domestic product is growing.
“Life’s really beautiful, isn’t it?” he said half-jokingly.
However, there are problems in the economy. For example, the median household income in the U.S. has dropped by about $4,000 to $52,000.
He said that while manufacturing output is rising, jobs in the manufacturing sector are falling. He also said despite the drop in the unemployment rate, labor force participation has fallen, indicating that some people who normally would be working are not actively looking for a job.
So, the outlook for the financial markets remains unclear.
“It’s just a very uncertain market,” Trotter said.
After the meeting, Trotter said he tries to remain positive about the economy.
“I think we are conditionally optimistic,” he said.
“The economy is big and complex. Right now, we’re moving in a good direction,” he said.
Trotter told the luncheon that income inequality is a concern, and he sees the potential for “social unrest” in the coming years if conditions don’t improve.
“We haven’t seen that since the late ’60s,” he said, referring to civil rights and anti-war protests.
After the meeting, Trotter said recent protest movements haven’t had much traction, such as the Occupy Wall Street effort.
However, that could change, he said. A failure of a large state pension system could trigger unrest, he said.
Trotter also spoke about the Federal Reserve Board’s monetary policy of quantitative easing, which has brought low interest rates, higher stock prices and a depreciating U.S. dollar.
“Is this monetary madness or is this the perfect solution?” he asked. The issue hasn’t been decided, he said.
After the meeting, Trotter said no one can say for certain what the long-term impact of the Fed’s easing policy will be.
“There’s no real history here to show us how it’s actually going to turn out,” he said.
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