logo
  Join        Login             Stock Quote

Markets Point To Economic Recovery In 2012

 March 07, 2012 02:18 PM
 


Marc Lichtenfeld
I'm a glass half full kind of person. That's quite an accomplishment coming from my family, who not only believes the glass is half empty but that it's teetering on the edge of the counter and is about to get knocked to the floor and shatter into a million pieces. Then we'll have to wear shoes in the kitchen for a month, otherwise we'll get shards of glass impaled in our feet.

Over the past year, while talking about the markets and the economy with my father, he'd often skeptically ask the question – "What's going to make the economy recover?"

My answer was always the same. "I don't know what's going to cause it to recover, but the market is telling us it is going to recover."

[Related -Dividend Roundup: CNI, BBT, WPZ, NSC, AMTD, MMP]

The markets are a forward-looking mechanism. They rise and fall a few months ahead of macro-economic trends.

The market topped in October 2007. The Great Recession officially began in December of that year. Similarly, the market hit a bottom in March 2009. The recession formally ended three months later.

There are still plenty of nattering nabobs of negativism out there who refuse to look at the data and admit things are getting better, often because of a political or economic agenda.

They'll point to unemployment at a still-too-high 8.3% (although it's down from over 9%) and ignore things like:

  • The four-week moving average of jobless claims is at its lowest level since March 2008.
  • Consumer confidence is at its highest point in over a year.
  • Tax revenue in many cities and states is higher than expected.
  • The Non-Manufacturing Business Activity Index rose for the thirty-first consecutive month and climbed 3.1 percentage points in February.

Next Page >>12
iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageBuffett's Market Indicator Flashes Red, Prepare To Sell

With each passing month, it's becoming evident that the current bull market has slowed from a gallop to a read on...

article imagePBoC joins other major central banks with unconventional monetary policy action

Softer than expected economic growth in China (see discussion) has finally spurred the PBoC into action. read on...

article imageA Buyback Boost?

Are stock buybacks the only thing keeping this bull market read on...

article imageGold Slides On Perfect Storm For Dollar

For all the anticipation surrounding the delivery of the Fed’s statement in the run-up to the September read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.