Thursday, June 13, 2013

Economy/Stock Market: June 2013 - The Reality Check

(Drivebycuriosity) - The stock markets are singing the blues again. According to Marketwatch many are expecting an imminent crash (marketwatch). Bullshit! The economic reality is much better than the gloomy majority believes.

This morning we got news that the weekly jobless claims dropped to 334 k, the the third lowest reading since the Financial Crisis (bespokeinvest). We also learned that retail sales climbed 0.6% in May. Retail sales ex-gasoline increased by 5.1% on a YoY basis (4.3% for all retail sales) (calculatedriskblog).

The data prove that the U.S. economy, the engine of the global economy, continues is slow but steady growth. The U.S. consumer spending, which acts as the heart of the upswing, is still pumping instead of all the "Katzenjammer" in the media. It will continue doing so in the coming months because of the healing job market and positive wealth effects provided by rising stock & home prices.

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