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.
Traders received another piece of disappointing economic data, suggesting the U.S. economic outlook isn’t as rosy as many economists believe.On Tuesday, June 30th, the Institute for Supply Management (ISM) reported Midwest manufacturing activity declined last month. In May, the Chicago Purchasing Manager Index (PMI) climbed. Read More
The U.S. Economic Outlook for 2015 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. Read More
Since the credit crisis of 2008, the policies of the Federal Reserve have spurred immense financial inequality in the U.S. Those individuals (a very small minority) who were able to take advantage of the monetary policies of the Fed have done extremely well in expanding their wealth. But for the rest of America, there has been no economic. Read More
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 TormentedIn 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. 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. Read More