Weekly Unemployment Claims Fall: A Recovery in Sight?

Weekly Unemployment Claims Fall: A Recovery in Sight?

Govt. building.jpg

It's just another day at Wall Street as Main Street struggles to find jobs, keep their homes and make some money on their investments.  The unemployment claims were lower than expected with 451,000 claims filled versus the predicted 470,000.  This sent the stocks up today for 6 out of 7 trading sessions with American Express, Alcoa, McDonald's and Bank of America showing solid gains.

 

With the economy being as fragile as it is every bit of positive data affects the stock market.  Housing and unemployment remain the key issues to be dealt with to assure a solid recovery.  If you are not working or are underemployed with a home that is worth less than you bought it, experts say by about 30%, there is not much to be optimistic about.

 

Consumer confidence is key to an economic recovery.  The consumer's natural instinct is to remain optimistic, we are an optimistic society in the U.S., yet we have been forced to look at the dire situation we are in and adapt to it the best we can.  It's going to take some time for our economy to gain some momentum. 

 

The unemployment rate is expected to stay high for quite some time.  The unemployment figures are likely to trend down and  the pace of hiring increase, but we have more workers entering the job market every day and even with a brisk amount of hiring, which we are far from, our economy can not absorb the amount of jobs needed to get everyone working.

 

Some say that the fall election will help rally the stock market.  It could be a tough year for the democrats in office, though I don't see any clear initiatives for change from the republicans that would lend itself to a sweeping victory for them.  We are all getting pretty tired of the political rhetoric and just want to see results.

 

One area that would help the economy both for Wall Street and Main Street is an up tick in housing sales.  Inflated housing brought our economy down and it will be the catalyst that lifts consumer confidence that get us spending money which will help the stock market. 

 

Money is cheap and there are some great deals out there in all areas of real estate, particularly housing.  Owning a home will always be part of our culture.  Money is loosening up from banks as they recover from losses while interest rates remain historically low.  Even Bernake won't raise the rate.  Some people have good jobs and money.  They will spend it and lead us into a recovery.

 

 

.

 

Leave a comment