Saturday, May 3, 2014

Economy/Stock Market: Reality Check May 2014

(Drivebycuriosity) - The US economy is in a much better state than the media and the pundits want us to believe. Yesterday we got news that the US economy created 288,000 new jobs in April. The numbers for the previous months were revised to plus 203,000 new jobs in March (from plus 192,000) and 222,000 in February (from plus 197,000). "Through the first four months of 2014, the economy has added 857,000 payroll jobs - slightly better than during the same period in 2013 even with the severe weather early this year", comments the blog CalculatedRisk (calculatedrisk).

These numbers confirm that we are in a virtuous circle: More jobs - and a falling unemployment rate - will fuel consumer spending in the coming months which will translate into higher company revenues & profits. Therefore the CEOs will hire more people. Climbing company profits also should rekindle the sluggish stock market and resume the rally. Enjoy.

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