The economy is primarily analyzed using the Gross Domestic Product (GDP) and employment levels. The GDP is a measure of all the goods and services produced in an economy. Economic growth is when the current and future periods of time are experiencing an expansion in GDP. As businesses increase their sales and are more confident about future activity, they hire more people. The new hires are more confident about their future and spend a portion of their income on business and the cycle continues. The stock market usually leads an economic recovery, because stock investors look to the future. If investors foresee an economic recovery 12 months from now, they will start to accumulate shares in companies that will benefit.
If you think the U.S. economy is improving, this story says that, truth be told, it’s the complete opposite for the economy, as recent data suggest there is no growth.
U.S. Economy’s Jobs Market Tormented
In March of this year, only 126,000 jobs were added to the U.S. economy. That’s well below the increase of 264,000 jobs in the previous month, less than half the average of 260,000 a month over the last 12 months, and below the 250,000 jobs analysts were expecting…. Read More
Despite being the global reserve currency, the U.S. dollar has been a second-rate currency, trading in the doldrums. At least that was until last July when it began to show signs of life. Since then, the U.S. dollar index has risen more than 21%. But why is the U.S. dollar rising and is it sustainable?
Why the U.S. Dollar Is Rising: Strong U.S…. Read More
The U.S. Economic Outlook for 2015… Read More will be significantly different depending on your vantage point. If you’re wealthy, 2015 will probably be another year of celebratory wealth creation.
If, on the other hand, you’re not, 2015 will feel an awful lot like 2014, 2013, 2012, 2011, 2010, and 2009. Wall Street and the U.S. government will tell you the economy is doing well, but it won’t feel like it.
There are issues brewing in the stock market with interest rates fears and the strengthening greenback that could drive the S&P 500 lower by five percent or more.
When Will the Fed Increase Interest Rates?
First, we have the fears surrounding rising interest rates after the strong improvement in the unemployment rate to a pre-recession low of 5.5%…. Read More
Look at any newspaper or watch any financial news channel and you will hear someone saying the U.S. economy is growing. To prove their point, they will refer to gross domestic product (GDP) figures and unemployment data.
Yes, the GDP numbers and the unemployment picture do look better, but our economy is still in very big trouble.… Read More
U.S. Retail Sales Contract, Inventory Growth Stellar?