Wisconsin and Foxconn = thousands of new jobs in the area

[Jason Howell]

Hey all. I'm wondering what you think about the news that Foxconn is planning to open a manufacturing plant in Wisconsin, and it turns out might be also working on another facility in Dane County. It will bring thousands of new jobs to the area if/when it is built.

https://www.nytimes.com/2017/07/26/business/foxcon...

http://www.jsonline.com/story/news/politics/2017/0...

When it comes to REI, how is Wisconsin? I've read that the taxes are pretty high there. Anyone have experience they can share and do you think something like this Foxconn investment might change the local economics in a positive way for investors?

[Jonathan Twombly]

@Jason Howell  To answer your second question, less cynically, as for Wisconsin, my advice would be the same as anywhere else.  Follow large, massive trends rather than individual events.  Look for areas of sustained population growth and stable economic drivers.   For that reason, Madison could be a good bet.  I tracked it thought the Great Recession and the economy stayed strong, with unemployment never getting much above 6 percent, compared to more than 10% nationally.  Why?  Because Madison is anchored by state government, the U of W, and healthcare.  Those drivers are not going anywhere.  And they are insulated from the broader economy.  A FoxConn plant is going to lay people off in a recession, especially because their labor costs will be so much higher in Wisconsin than in China.  Those jobs will be the first to go, unless, of course, they decide for political reasons to take a hit because they want to keep the politicians happy.  (Sorry, I could not restrain my cynicism after all.)