SubscribeAll Posts Tagged With: "economic recovery"
U.S. Consumers Unemployed and Uncertain, Many Question Rebound Efforts
The U.S. stock market has staged one of the more impressive rallies in history this year, as “green shoots” of economic growth whetted investors appetite for risk. The Dow Jones Industrial Average is up more than 40% from mid-March, while the Standard & Poor’s 500 Index has soared 46% and the Nasdaq Composite Index rocketed an astonishing 55%.
Despite investors’ newfound optimism, the economy is still contracting, unemployment is still rising and consumer spending and sentiment is still abating. That could mean the sharp “V-shaped” recovery many analysts are anticipating may turn out to be a more-prolonged “U-shaped” rebound.
"We’re looking at a U-shaped recovery,…
10Aug2009 | Money Morning | 0 comments | ContinuedGearing Up for a Jobless Recovery?
Could the U.S. economy be looking at a “jobless recovery?”
After the worst financial crisis since the Great Depression reached its apex late last year, the U.S. economy has shown signs of life in recent months. Stock prices have soared. The housing market – once in veritable freefall – seems to be bottoming out in preparation for an eventual upsurge. And just last week, the government said that businesses cut jobs in May at the lowest rate in six months, a report that offered encouragement both to investors and to the millions of U.S. workers who have lost their jobs.
But U.S.…
11Jun2009 | Money Morning | 1 comment | ContinuedWhen Will The Economy Recover? These Three Key Areas Will Tell You…
My five-year old daughter has a thick mane of chestnut colored hair on her head. By the time she goes to school, it always looks perfect – but few people know about the work involved beforehand. My wife or I usually have to spend 15 minutes untangling the knots in what invariably starts out as a post-sleep bird’s nest.
This is a good analogy for the economy and markets. Our capitalist society is a beautiful thing that rewards entrepreneurs and intelligent risk takers and investors. But for the past few years, we’ve got ourselves into quite a tangle with the housing…
1Jun2009 | Smart Profits Report | 0 comments | ContinuedThe Economic Recovery: Have Stock Values Gone From Green to Yellow to Red?
Human psychology is a strange thing.
Two months ago, I was fielding hostile questions from readers wanting me to defend my position that we were in neither another Great Depression nor a “lost decade” like Japan experienced in the 1990s.
Today I’m fielding questions from readers who are shoveling money back into the market – since they were earning next to nothing in cash anyway – and want to know what to buy to take advantage of the coming economic recovery.
What has actually changed over the past two months? Very little, really…
- The economy is still weak and losing 600,000+ jobs a month.…
This Is When the Big Money Is Made in Stocks
On March 20, I titled DailyWealth "A Dramatic Turn for the Better."
I laid out our True Wealth "script" for making money… with the conclusion that "Now is the time in the script that you want to buy stocks."
We hit the nail right on the head. And we’re still "on script." In mid-March, I told my paid subscribers, "The entire market could rise by 50% from its lows last week over the next 18 months." We’re already well on our way to seeing that prediction come true. The important thing to understand now is this:
Things are getting less bad. This is when the…
5May2009 | Stansberry and Associates | 0 comments | ContinuedA Dramatic Turn for the Better… Time to Buy Stocks
In last month’s True Wealth newsletter, I laid out our “script” for making money this year…
I told my subscribers to “think of it as a checklist to know what inning we’re at in the game and how much longer the game will take.”
In short, a month ago, things looked pretty bad. But today, we’re back on “script.” Based on the script, you want to own stocks, right now. Take a look…
The True Wealth Script for Economic Recovery
-Investment-grade corporate bonds rally first,
-then stocks rally. Around the same time,
-the price of copper recovers.
-The CILI (aka “Silly”) Recession End-icator goes up for three months. This is…
20Mar2009 | Stansberry and Associates | 0 comments | ContinuedWorld Markets Rally, China to Double its Planned Stimulus
Stocks surged yesterday (Wednesday) after it was revealed that Chinese Premier Wen Jiabo would announce new stimulus measures on top of the $585 billion (4 trillion yuan) package introduced in November.
“This is just evidence of what we’ve been saying all along about China’s economy, the rest of the world is just finally catching on,” said Money Morning Investment Director Keith Fitz-Gerald. “While the rest of the world remains focused on band-aids, China remains focused on growth.”
Premier Wen is expected to make the announcement today (Thursday) when he appears at the opening session of the National People’s Congress.
“In Premier…
5Mar2009 | Money Morning | 0 comments | ContinuedIf Japan Bounces Back in the New Year, Investors Will, Too
Japan has been an infuriating country for U.S. investors for almost 20 years now, since its benchmark Nikkei 225 index hit its trading high of 38,957 in late December 1989. The market then dropped steadily to a third of its peak value by the end of 1998, zoomed back up to 20,000 in March 2000, fell to a low of 7,600 in March 2003, and then recovered to 17,600 in June 2007.
Now, however, it has swooned to 8,695, infuriating global investors. And there’s two ways to look at it.
You can regard it as hopeless case, a market stuck in permanent…
14Nov2008 | Money Morning | Comments Off | ContinuedGRAND THEFT SOCIETY
A core problem with government is that its managers believe that all reality will conform to their wishes if they issue the right orders, pass the right laws, and put the right people in charge. Reality resists this simple-minded approach; witness the debacle of the war on terror. Sadly, the same group that has managed that war is now managing another one: the war on recession.
The tendency of these managers is to fabricate a view of cause and effect that conforms to what they would like to do. In the war on terror, we were told that the 9-11 attacks…
4Jul2008 | Daily Reckoning | Comments Off | Continued
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