March 16, 2010 (DJIA closed 10,686)
Economy and Labor Market: Economic activity has continued to strengthen and that the labor market is stabilizing
Housing: However, investment in nonresidential structures is declining, housing starts have been flat at a depressed level, and employers remain reluctant to add to payrolls
Household Spending: Household spending is expanding at a moderate rate but remains constrained by high unemployment, modest income growth, lower housing wealth, and tight credit.
Financial: While bank lending continues to contract, financial market conditions remain supportive of economic growth
Grandpa: Labor market is stabilizing however; employers remain reluctant to add to payrolls and household spending remains constrained by high unemployment. Bank lending continues to contract however; market conditions remain supportive of economic growth…WHAT!!
January 27, 2010: (DJIA closed 10,236)
Economy and Labor Market: economic activity has continued to strengthen and that the deterioration in the labor market is abating. Also: investment in structures is still contracting and employers remain reluctant to add to payrolls
Housing: NO COMMENT
Household Spending: Household spending is expanding at a moderate rate but remains constrained by a weak labor market, modest income growth, lower housing wealth, and tight credit.
Grandpa: Deterioration in the labor market is abating however; household spending remains constrained by a weak labor market and employers remain reluctant to add to payrolls??
December 16, 2009 (DJIA closed 10,441)
Economy and Labor Market: economic activity has continued to pick up and that the deterioration in the labor market is abating. Also: businesses remain reluctant to add to payrolls
Housing: housing sector has shown some signs of improvement over recent months
Household Spending: Household spending appears to be expanding at a moderate rate, though it remains constrained by a weak labor market, modest income growth, lower housing wealth, and tight credit
Grandpa: See January 27, 2010
November 4, 2009 (DJIA closed 9,802)
Economy and Labor Market: economic activity has continued to pick up (closest comment regarding the labor market: “businesses are still cutting back on fixed investment and staffing, though at a slower pace)
Housing: Activity in the housing sector has increased over recent months
Household Spending: Household spending appears to be expanding but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit
Grandpa: Housing activity has increased over recent months however; household spending remains constrained by ongoing job losses???
September 23, 2009 (DJIA closed 9,749)
Economy and Labor Market: economic activity has picked up following its severe downturn (closest comment regarding the labor market: “businesses are still cutting back on fixed investment and staffing, though at a slower pace)
Housing: activity in the housing sector has increased
Household Spending: Household spending seems to be stabilizing, but remains constrained by ongoing job losses, sluggish income growth, lower housing wealth, and tight credit
Grandpa: See November 2009, January 2010 and March 2010. Same Ben, different meeting.
As of the close on 3/16/2010, the DJIA is up a staggering 937 points (9.6%) from the 9/23/2009 close. During this same period, the S & P 500 is up 8% (who said you can't manipulate 500 stocks), while the NASDAQ found Pluto and is up 247 points or 11.5% in just under 6 months.
During this 6 month period, Household Spending remains constrained, employers remain reluctant to add to payrolls and bank lending continues to contract. Clearly the Quant boys and girls are in charge. Welcome to the New World Order...robots have in fact taken over.
Grandpa maintains this will all end very badly and suggests stocking up on your favorite snacks as they are finishing the shoot of a sequel to The Perfect Storm.
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