Economic Recovery

Following a period of protracted decline in economic activity, a recovery occurs when business activity is increasing. This is viewed primarily with increases in Gross Domestic Product (GDP) and employment levels. 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 see an economic recovery 12 months from now, they will start to accumulate shares in companies that will benefit.


Retail sales jumped in May, suggesting the U.S. economic recovery is picking up momentum. On Thursday, June 11, the Census Bureau reported better-than-expected retail and food services sales. For the month of May, total retail and food service sales came…

Rating agency Standard & Poor’s (S&P) raised Ireland’s credit rating for a second time in six months, this time from A from A+, as the country’s economic recovery continues. (Source: The Wall Street Journal, June 5, 2015.) On Friday June…

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…

Very soon we’re going to hear the earnings news straight from the horse’s mouth. Quarterly earnings are beginning to trickle in and even if you aren’t interested in the stocks that you don’t own, corporate reporting is the most important…

Stocks are going to gyrate around second-quarter earnings, but that’s exactly what this market needs—the corporate bottom line and expectations for the rest of the year. With so many stocks trading at their all-time record-highs, I view investment risk in…

By no surprise to me whatsoever, the government’s third and final estimate of first-quarter U.S. gross domestic product (GDP) came in at a negative annual pace of 2.9%. (Source: U.S. Bureau of Economic Analysis, June 25, 2014.) The U.S. economy’s…

Don’t buy into the notion that there’s economic growth in America! We’ve already seen U.S. gross domestic product (GDP) “unexpectedly” decline in the first quarter of 2014, and now there are signs of another contraction in the current quarter. (The…

There still is no real trend in the equity market. One day, stocks sell off big-time; the next, the S&P 500 and Dow Jones Industrial Average hit new record-highs. This is a very tough market to figure; anything can happen…

One week ago today, the Bureau of Labor Statistics reported 288,000 jobs were added to the U.S. jobs market in April. The unemployment rate fell to 6.3% from 6.7 % in March. (Source: Bureau of Labor Statistics, May 2, 2014.)…

Can it be true? The U.S. Department of the Treasury has reported that for the federal government’s fiscal 2013 year, which ended on September 30, 2013, the U.S. government budget deficit was $680 billion—the smallest budget deficit in five years.…

The Federal Open Market Committee (FOMC) decided this week to keep quantitative easing and easy monetary policy going. The statement by the Federal Reserve said, “To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its…

More evidence consumer confidence in the U.S. economy is plunging… The monthly Bloomberg Consumer Comfort Index, a consumer confidence indicator that shows the expectations of Americans about the U.S. economy, plunged to its lowest level in October since November of…

While the media and politicians tell us we’re in an economic recovery…I keep writing about the slowdown we’re heading towards. How can I say that? First, take out the stock buyback programs, and you’ll see that U.S. companies are seeing…

The airline sector has reorganized over the past few years, with mergers and route cuts that have resulted in an uptick in prices for passenger travel driven by increased capacity. Yet with the rise in global wealth, we are seeing…