- Jul 22, 2012
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The country has been doing great since Janet Yellen announced the end of the recession in 2009. The stock market has been steadily growing. Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon, if ever, a 50 or 60 point break from present levels as the perma-bears like Marc Faber and Jim Rogers have predicted. The economy is doing so well that companies are blowing off capital expenditures in favor of share purchasing. IBM, for example, borrowed 2.2 billion dollars so they could buy back 10.5 billion dollars worth of shares while only spending 4.7 billion on capital expenditures. That's how white hot this economy is. They don't even feel the need to invest in the company by doing things like upgrading machines or expanding operations, so surplus cash goes into dividends and reducing the number of outstanding shares. These are the fundamentals of a rock solid economy.
It's not just companies that are doing great. The middle class is doing better than ever. As you can see in the chart below, labor participation is steadily declining as families can now afford to have one person stay at home to raise the kids.
For people who want to work, things are steadily improving. Of the people actively searching for a job, only about 8% are unable to find a one.
Despite the strength of our economy, retail continues to struggle.
http://www.bloomberg.com/news/2013-...s-holiday-seen-weakest-since-2009-retail.html
Have we finally given up on consumer culture and become a culture of thrift? The numbers seem to suggest this is the case. This might mark the beginning of America's next golden age. I've sold all of my holdings in gold and silver mining companies (at the bottom) and put all of my money into solar companies because I see nothing but sunny days and clear skies in our future. :thumbsup:
It's not just companies that are doing great. The middle class is doing better than ever. As you can see in the chart below, labor participation is steadily declining as families can now afford to have one person stay at home to raise the kids.
For people who want to work, things are steadily improving. Of the people actively searching for a job, only about 8% are unable to find a one.
Despite the strength of our economy, retail continues to struggle.
http://www.bloomberg.com/news/2013-...s-holiday-seen-weakest-since-2009-retail.html
Have we finally given up on consumer culture and become a culture of thrift? The numbers seem to suggest this is the case. This might mark the beginning of America's next golden age. I've sold all of my holdings in gold and silver mining companies (at the bottom) and put all of my money into solar companies because I see nothing but sunny days and clear skies in our future. :thumbsup:
