It appears that there has been some healing in the recent few months in some economic indicators: new and existing home sales, wholesale and factory orders, consumer spending and more positive reports from the Fed. And the stock market has proved to be resilient as of recent days with corporate earnings coming in better than expected. On the flip side, the unemployment rate is rising, March retail sales came in low and foreclosures are on the rise.
Ben Bernanke in Washington believes that economic declines are beginning to slow. And President Obama’s top advisor, Larry Summers, sees a “more balanced picture.” Away from Washington, Martin Feldstein of Harvard stated that “things are falling, but they are falling a little more slowly, but that doesn’t mean they will turn around anytime soon.” The forecast out of UCLA states that the recovery will be in 2010.
Recently, the Wall Street Journal polled economists and on average, they believe the recession will end in the third quarter of 2009. Whether the recovery is in 2009 or 2010, make sure that your assets are invested for long term success.
Wishing You Wealth in all its Greatest Forms,
Alex
1 comment:
The rise in home sales could be misleading. There's a seasonal cycle to home sales, with more activity in summer months and less in winter months. Thus home sales could be up compared to recent months, but the overall annual trend could still be down. You'd have to compare to April 2007 home sales (forget 2008, heh) to get a better idea of the trend.
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