Ad Majorem.....Wealth Builders
From Money News March 8, 2013
New Yorkers and Wall st. traders are ecstatic over the bull run (on a wall of worry) for the unprecedented rise in Dow Jones, now over l4,000. This was last seen in 2009. The gainers are mostly high tech and industrial companies those who are most likely to profit from a recovery. Service companies and housing have also showed signs of recovery.
This bull run happen despite political wrangling in Washington. However, the unemployment picture is still grim at 7.9% (compared to only 4% when the same Dow heights were reached)
This rise in the NY stock market has seen other equity markets rise also, including the PHL
Critics however are unappreciative of this development:
l. The bull run is fueled by liquidity from quantitative easing program (QE) program of the Federal Reserve Bank. FDR buys bonds of banks, and this flows into stocks;
2. The money that should go into industrial redevelopment to create jobs does not happen
3. Hence unemployment is still high?
Hence the investors must make hay while they may because this may be short lived.
Fmr DTI Usec Panlillo talks about absroptive capacity of the govt to fund social services which will not take place if it is only the stock market (the paper traders and paper pushers) move at Wall St. Real progress when the agri, service sectors, industrial sectors produce more goods and services again.
Is the US recovery now here?
Why are we interested in the US recovery?
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