Jobless claims from the U.S. dropped to 407,000 final week, according to the Labor Department, the lowest amount since July 2008. My take. Then the unemployment rate for November 2010 will collapse In case the claims are decreasing. (President Obama and Fed Chairman Bernanke is going to be glad individuals when people November unemployment numbers come out!)
Take pleasure in the rally in stock prices while it continues!
Hence, entering 2011, my main concern, and that which I think will be the biggest surprise for most investors, are greater interest rates…that are a large drawback for the stock exchange. And that we are in a bear market rally in my view.
Next time you see that the Stock Exchange is down Due to the difficulties in Europe with Ireland and browse the Internet Websites or the company papers, recall the facts:
If it weren’t for the euro being under a lot downward pressure, our greenback would maintain a free-fall, which could lead to interest rates from the U.S. climbing even faster than they’re currently rising.
Consumer spending from the U.S. climbed in October for a fifth consecutive month in accordance with the Commerce Department. Now you see.
The stock exchange is a major indictor. With stocks increasing in 2009, the market foresaw the corporate and economic information of 2010. So, what occurred together with America returning to adulthood and the market, in 2010, was no surprise.
Thanksgiving weekend 2010 is supporting us. Black Friday is supporting us. Back to operate. Wall Street opens this afternoon. I am looking in stocks which began in to keep on moving upward through towards the end of 2010.
Additionally since May of the year, salary had their largest gain in October in the Commerce Department. Consumers are currently making cash sales are rising and consumers are saving more; a combination that is amazing. During Americans’ savings rate had been adverse.
The stock market does not like interest prices that are increasing. And that is what I am worried about moving into 2011. Even though it isn’t polite to state, as a nation, we have to thank the European nations such as Spain, Ireland, Portugal and Greece due to their mismanagement.
The GDP of the USA in 2009 has been $14.256 billion. Ireland’s debt woes have hardly any effect on the U.S.. But I am convinced that the gains the bond dealers have made shorting bonds have been spectacular.
Where it is Headed where the Economy Stands:
“The Dow Jones Industrial Average, the S&P 500 along with another significant stock exchange indices completed yesterday with the most effective two-day demonstrating since 2002. I am taking a look as a stock exchange bear trap at the market rally of the previous two times. As the market gets nearer to contraction, 2008 will probably be a hardest financial season for most Americans.” Michael Lombardi November 29, at PROFIT CONFIDENTIAL, 2007. The Dow Jones Industrial appeared at. A”sucker’s” rally created in November 2007, which Michael instantly categorized as keep trap for his or her readers. By mid November 2008, the Dow Jones Industrial Average was 8,726.
But moving into 2011,” I feel the stock exchange smells a rat. And this rat is rates of interest. Interest rates are climbing. The return on three-month U.S. T-bills is up 30 percent in a matter of weeks. Mortgage rates are climbing.
So, with? Why do I keep calling the industry actions since March 2009 a bear market rally, as opposed, more importantly?