Thursday, April 28, 2011

Stock Market: What Really Matters

Rising jobless claims? A slowing economic recovery? The stock market ignored the bad economic news today and climbed to a new multi-year high.

Rightly so. The disappointing numbers today (the jobless claims that jumped last week by 25 K on 429 K and the economic growth that slowed to 1,8 % last quarter from 3,1 % in the quarter 2010) are just statistical bloopers. The strong economic upswing, which started around 2 years ago, stays intact.

The profits of companies are rising fast, because they get more efficient and benefit from the high growth of the global economy, especially in China and other economic markets. The dynamics of the world economy and the rising productivity of companies should keep the rally running for a while!

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