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.
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-re… 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 w
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
The chart below shows us that between April and August of this year, home prices in the U.S. declined. The S&P Case-Shiller Home Price Index is only released 60 days after each month’s end, so while data for September and October are not yet available, based on what I’m about to tell you, five years after the Great Recession, the… Read More
According to research by UC Berkeley, in 2012, the top one percent of income earners in the U.S. earned 22.5% of all the income. The bottom 90%, on the other hand, earned less than 50% of all the income. (Source: Pew Research Center, January 7, 2014.) Income inequality in the U.S. economy is the highest it has been since 1928. The rich are g… Read More