EI84mzk2E8AmuBYt0y5NY8kJU3M
nav-left cat-right
cat-right

So Where’s The Recovery?

Wall Street took a beating this week and from what I can see, it will only continue when the stock market opens on Monday. So where’s the recovery?

Let’s look how well the employment numbers looked for the month of May. According to the report, only 54,000 jobs were added to the private sector during the same period. The bad part about that is that for the employment rate to hold steady, it must add 150,000 jobs each month just to keep up with the population growth in the U.S. So obviously, there’s no recovery in the job market.

How about the housing market? Well from what I’ve seen coming out over this past week, it also doesn’t look good at all. In some areas of the United States, home prices have fallen to the levels of 2002. In other areas like Las Vagas, the home prices have fallen to the levels of 1999. Many feel that the average home price will continue to drop for the remainder of this year. So I guess we can rule out that industry for showing signs of recovery.

So why is it that the stock market has been climbing since it’s bottom back in March of 2009. We’ll I feel that there was some companies that had solid fundementals and balanced sheet to continue to grow in the trouble economy. Remember that the indicies really only show the strength of the markets, not necessarily the strength of the economy. Of course many investors and traders were not completely wiped out financially and were willing to keep buying and selling.

How long can this keep up? In my opinion, not for long. Congress isn’t doing what they need to do and the present Administration is spending like a drunken sailor (I know that’s not fair to say about drunken sailors since drunken sailors spend their own money). It was reported this week that if a decision isn’t made to raise the debt ceiling, Moody’s has stated that they will decide on how they are going to re-evaluate America’s credit rating. Figuring that both the democrats and the republicans can not agree on anything, we’re going to lose our current rating and that will send this country into an inflation tailspin.

So if you’re thinking of trading in the stock market, tread carefully and be aware of the day by day issues going on in Washington as well as on Wall Street.

Happy trading.

Related posts

March Madness On Wall Street

Over the past two years the DOW has gained 95% since it hit it’s bottom of 6,547. Overall the markets as well as the outlook on the economy has improved greatly, but have we really stabilized the decay which was known as the housing market crash?

In the last month the DOW gained 1% and nearly 5% since the new year. Unfortunately I feel we’ve haven’t really solved any of the problems in our economy or in Washington. Congress is out claiming to cut the deficit and balance the budget. If the government was a corporation that was traded on the stock exchange, I wouldn’t even think of investing in it. Before I invest into a company, I look at their statements, earnings report, listen to their conference calls. I dissect the entire company’s financial so I know what I’m buying into. The U.S. government is running in the red and has pretty much tapped out on any more borrowing. Soon Moody’s is going to lower the country’s rating.

In the meantime Wall Street is going on like the world is financially sound and everything is going to be OK. Even though the unemployment rate has dropped to 8.9%, it doesn’t mean that more people are back at work. What it means is the the people who were collecting unemployment over the past 26+ weeks (in many cases, 99 weeks) are no longer on the register since they’ve exhausted all their benefits.

Look what’s happening in the United States over the past two weeks. Oil is now at $104 per barrel and the average price of gas has gone up over $0.30+ per gallon. At the time of this writing, the average price per gallon is $3.47. With the price of gas rising, in turn the price of food, services as well as any other product has also gone up.
Look at the price of gold today. At the moment the price of gold is $1428.00 per oz. Which also makes me think about how weak the American dollar has become over the same time period.

Well since March is here, let’s see if it comes in like a lion and leaves like a lamb. I believe that this month is going to be one to remember and I don’t mean that because of good things coming down the pike. If you’re one of the ones who think that this trouble is all behind us, well then go ahead and buy all the stocks your can, but if one of the many who are thinking like me, then you should be buying gold and trade some foreign currency since our dollar is weakening as we speak.
Either way…Happy trading.

Related posts

What Exactly are Penny Stocks?

Before even thinking of buying penny stocks it’s probably a good idea to understand what they are and how they’re viewed by the investing world. Three basic categories of penny stocks are used to define the actual words. Each one has a separate meaning with entirely different investment potential, risk ratios, and trading strategies. You might already know one of these meanings, however if you are doing research or talking about trading with another trader, you need to be careful because the information could be referring to an entirely separate meaning. Therefore, you must understand each meaning in order to make sure everyone is talking about the same one.


True Share Value – When people who do not know much about investing hear “penny stock” this is what they assume is the meaning. This is when a penny stock is valued under a dollar. Usually people believe that the stock is only valued at one cent. This meaning is not used very often in publications, probably due to the fact that it makes perfect sense. If a trader is speaking of a stock that is traded on a major market, such as the NYSE, then it is typically worth no more than $5.00 for each share.


The Stock Market Exchange – On occasion, and in particular with penny stock brokers, the meaning of penny stocks is derived from the market on which the stock is traded. The most prevalent penny stock exchange is Over the Counter, or the pink sheets. Basically, this means that the stock is not qualified to be on one of the more conventional markets. Pink sheets have started to examine penny stocks to make sure they meet their requirements for their exclusive penny stock market.


Market Capitalization – This is the final category of a penny stock and it is based on the company’s value. Usually, the companies have to be worth under $100 million dollars. The essential aspect is the company’s size, rather than the actual value and the price of each penny stock share.

Related posts