Economic Growth

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.


According to the U.S. Census Bureau, for the first time in 35 years, more businesses in the U.S. economy are dying each year than being established. In 2013, 400,000 businesses started in the U.S. and 470,000 closed down. (Source: “American…

IMF Lowers Economic Outlook for 2015 In what appears to be standard routine these days, the International Monetary Fund (IMF) slashed its economic outlook for 2015. This would mark the fourth consecutive downward revision from the IMF, suggesting that China’s…

I have written over and over again on how distorted the U.S. business sales and inventory figures are. Manufacturers are stockpiling products. Retailers are experiencing a decline in sales. Consumer spending is getting softer. But it’s more than just retail…

What used to be a leading indicator, the stock market has now become a lagging indicator. For months (in these pages), I have written about how sick the U.S. economy has become. Stock market investors are waking up to the…

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…

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…

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…

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…