Time to invest in the stock market?
Stock markets have been rallying for almost two months now since the Dow hit a nearly 12-year low in early March. The S&P 500 has surged about 30 percent since then; and the Dow Jones industrial average has posted its best two months since the start of the last bull market in 2002. International indexes are up sharply too, marking the strongest global stock rally since 1991.
Traders work on the floor of the New York Stock Exchange moments before the closing bell.
One expert tells the Financial Times: "All the things are in place for the bear market to have ended."
And it's not just stock markets that are rebounding... credit markets, emerging markets and commodities - like oil - are all on the rise. Also, although company earnings are still decreasing, they aren't as bad as they were. Surprise results have come from companies like Wells Fargo, JP Morgan, Ford and Apple.
And then there's the massive economic stimulus program that may have started to work its way through different parts of the economy.
It's hard to believe two months ago we were all talking about the first depression since the 1930s, deflation and bank nationalizations. But markets often improve before the wider economy does; and some think the markets could keep rallying for another six months.
The 'glass half empty' crowd isn't convinced. They suggest the current stock market rally is not for real. They worry that banks will continue to hold back lending and housing prices will continue to fall.
In light of the fact that many Americans have been standing on the sideline for some time...
Here’s my question to you: Is now the time to invest in the stock market?
Interested to know which ones made it on air?
Recession means more abandoned pets
Lola the cat reaches under her enclosure at the Sacramento SPCA. Lola was surrendered to the shelter back in February when her owner’s home was foreclosed upon. (PHOTO CREDIT: David Paul Morris/AFP/GETTY IMAGES)
FROM CNN's Jack Cafferty:
With all the stories about the bad economy, here's something you probably haven't heard about:
The Detroit News reports an unprecedented number of abandoned cats and dogs being left behind in foreclosed homes, in dumpsters and in parking lots all around the city. Meanwhile more people who bring their pets to shelters are saying they've lost their jobs and can't afford to care for them. Or, after losing their homes, they're moving to apartments that don't allow pets.
And it's not just Michigan. The American Humane Association estimates that with 8,000 houses going into foreclosure every day, between 15,000 and 26,000 animals are in danger of losing their homes daily.
A recent national survey by petfinder.com finds that 84 percent of shelters and rescue groups are caring for more pets because of the economy; and as you might expect, 37 percent of them report seeing a decrease in pet adoptions in the last year.
Some shelters are trying to help people keep their pets by creating pet food assistance programs. There are groups donating pet food to seniors - some of whom had been feeding delivered meals meant for them to their pets.
Animal groups encourage people who have lost their homes to take time to plan for their pet; to try and find an apartment that will accept animals and not just leave them behind to fend for themselves. They can't.
Here’s my question to you: In light of the recession, what can be done about the growing number of abandoned pets?
Interested to know which ones made it on air?
Worried about a depression?
Life size bronze statues depict men standing in line during the Great Depression. (PHOTO CREDIT: MARK WILSON/GETTY IMAGES)
FROM CNN's Jack Cafferty:
More Americans are worried that our current recession might spiral into another Great Depression. A new CNN/Opinion Research Corporation poll shows 45 percent of those surveyed think a 1930s-style depression is likely to happen in the next year; that's up from 38 percent who felt that way last December.
The good news is Fed Chairman Ben Bernanke isn't one of those people. When asked on "60 Minutes" if the country is headed into a new depression, he said "I think we've averted that risk. I think we've gotten past that."
This poll described the Great Depression as a time when about one in four people were out of work, banks failed across the country and millions of Americans were temporarily homeless or unable to feed their families.
Depression or no depression, the survey shows 89 percent of Americans describe economic conditions today as "poor;" only 11 percent say they're "good."
When asked how long it will take for the economy to recover, 10 percent say within a year; 32 percent say between one and two years, 24 percent say between two and three years. 12 percent say between three and four years; and 22 percent think even longer than that.
As for Bernanke - he says the recession will probably end this year - and a recovery will start next year. The Fed chief says stabilizing the banking system is the key to a full recovery.
Here’s my question to you: How worried are you that the recession will become a depression?
Interested to know which ones made it on air?
Best kinds of jobs in recession?
FROM CNN's Jack Cafferty:
If you're looking for a job that's recession proof, here's one where the customers don't talk back. Newsday reports that interest in funeral careers is skyrocketing.
For the most part, the funeral business is recession proof.
The mortuary science program at one Long Island community college has seen inquiries increase by 15 percent in recent months, with enrollment for last fall doubling from the year before. One program official says 80 percent of the graduates are employed in the funeral service industry; and they earn about $50,000 a year after completing a one-year residency.
Human resource experts suggest some other careers worth pursuing during a recession include those in health care, energy, education, public safety, accounting, military and debt collection. Some companies that are actually hiring right now include: Radio Shack, AT&T, Sears, K-Mart, Kindercare Learning Centers and Interim Health Care.
And there's no question a lot of people are looking. The nation's unemployment rate hit 8.2 percent last month; and some fear the jobless rate could reach double digits this year. About 4.4 million jobs have been lost since the recession started in December of 2007.
Meanwhile a new CNN/Opinion Research Corporation poll shows worries about unemployment have tripled over the last year - with 36 percent of those surveyed now saying unemployment is the top economic issue. A majority of people have lost confidence that they can find a good job at their current salary if they had to.
Here’s my question to you: What are the best kinds of jobs in a recession?
Interested to know which ones made it on air?
FULL POST
Good idea for Obama admin. to call economy sound?
In the worst recession since the Great Depression, should Obama's staff be saying the economy is sound?(PHOTO CREDIT: OFF/AFP/GETTY IMAGES)
FROM CNN's Jack Cafferty:
The White House needs to make up its mind. Sounding a lot like John McCain during the campaign, they said the economy is fundamentally sound over the weekend.
The president's economic adviser, Christina Romer, says the fundamentals are sound "in the sense that the American workers are sound, we have a good capital stock, we have good technology." She adds that this is despite of the "mess" we're temporarily in - including huge job losses and plunging GDP.
After weeks of seeing the economic glass as more than half empty, administration officials, including President Obama himself, are out painting a more positive picture these days. The president says he's confident in the economy - that if we focus on the quote "fundamentally sound aspects of our economy" like the many outstanding companies, workers, innovation, etc. - we will make it through this rough time.
Nonetheless, just a week ago OMB director Peter Orszag said that "fundamentally, the economy is weak." And despite the optimism coming from the White House and Wall Street, there don't seem to be many signs that an end is near for the current recession. Fed Chairman Ben Bernanke suggests the recovery won't start until next year.
Here’s my question to you: Is it a good idea for the Obama administration to say the economy is sound despite the worst recession since the Great Depression?
Interested to know which ones made it on air?
Will recession make you vote out incumbents?
FROM CNN's Jack Cafferty:
As the recession drags on, there's a real possibility that the sagging economy could spell trouble for incumbent politicians. Take New Jersey, for example:
Democratic New Jersey Governor Jon Corzine trails his Republican opponent in a hypothetical match up.
A Quinnipiac University poll of registered voters shows Democratic Governor Jon Corzine - who is up for re-election in November - trailing his likely Republican challenger Chris Christie by nine points in a hypothetical match up.
That's up from a six-point margin last month; and Corzine is behind despite the fact that 61 percent of those surveyed say they don't even know enough about Christie.
Half of all voters disapprove of the job Corzine is doing; and 53 percent say he doesn't deserve to be re-elected. In this climate, it probably doesn't help Corzine that he has a Wall Street background.
And Corzine's not the only one. The Dallas Morning News writes that the recession could play a key role in next year's re-election campaign of Texas Governor Rick Perry, a Republican.
Perry has been very bullish on the economy, taking credit whenever things go well. With job losses expected to peak in Texas right around the primaries, Perry might have a lot of explaining to do.
As one expert puts it: "Bad economies are bad for incumbents. He can't claim he wasn't in office when the economy went bad. He's been there for a decade."
Here’s my question to you: Will the recession make you less likely to vote for incumbents?
Interested to know which ones made it on air?
If recession lasts for years, how will you cope?
FROM CNN's Jack Cafferty:
The U.S. economy has "fallen off a cliff," is going through "a death by a thousand cuts," and those who think it will recover this year are "delusional." All this according to a couple of the sharper financial minds out there.
Billionaire Warren Buffett likens the current battle against prolonged recession to a Pearl Harbor-like situation.
Nouriel Roubini, a professor at New York University's Business school tells CNBC there's no hope the current recession, which is already 15 months old, will end this year. He says it will "more than likely last into 2010."
Roubini says most of our financial institutions are "entirely insolvent" and the government should temporarily take over the banks, clean them up and get them working again. Although he says there will be a light at the end of the tunnel; Roubini believes things will probably get worse before they get better.
If that's not dismal enough for you - there's Warren Buffett. Also speaking to CNBC, the billionaire investor described the current crisis as an "economic Pearl Harbor" and says the economy has "fallen off a cliff." He says it "can't turn around on a dime" and that a turnaround won't happen fast.
Buffett predicts unemployment will get worse before it gets better; and he says inflation has the "potential" to be worse than it was in the 1970s. Buffett suggests that five years from now the economy will be running fine.
Five years. That's a very long time for the millions of Americans who are already suffering and have been for months - without jobs, with rising costs for health care and education, and with decreased home values and mounting foreclosures.
Here’s my question to you: How will you cope if the current recession lasts for a number of years?
Interested to know which ones made it on air?
Can government head off depression?
A man waiting at a breadline in San Francisco during the Winter of 1933. (PHOTO CREDIT: DOROTHEA LANGE/NATIONAL ARCHIVES/NEWSMAKERS)
From CNN's Jack Cafferty:
The U.S. economy is in its worst shape since the recession of the 1970s, and perhaps soon it will match the Great Depression. So says the CEO of General Electric.
Jeff Immelt says that unlike other downturns, this one is faced with limited liquidity. He stressed that governments around the world have gone "all in”… "firing as many bullets" as they can to stimulate their economies, and eventually "government always wins". Immelt says it's more important to move forward quickly with a large stimulus package than to worry about the details. Congress - are you listening?
And there's more. Another top economic mind, the co-chief investment officer of Pacific Investment Management Co – or PIMCO – says the U.S. might head into a "mini depression" unless government spends trillions of dollars. That's trillions, with a "T." Bill Gross told Bloomberg TV "there is a potential catastrophe if the U.S. government continues to focus on billions of dollars". While Congress bickers about mere hundreds of billions, a couple of the brighter bulbs in the private sector suggest it's going to take much, much more.
Gross says that the Fed is going to have to buy Treasuries. That's because some believe that as China's economy slows, it may start buying less of our debt. Goldman Sachs estimates that government borrowing will reach $2.5 trillion this fiscal year.
Meanwhile, these grim assessments came right before today's report that employers cut another 598,000 jobs in January – the worse job loss since December 1974. It brings the unemployment rate to 7.6%. Happy Friday.
Here’s my question to you: Is the U.S. government capable of heading off a full-blown depression?
Interested to know which ones made it on air?
A “mental” recession vs. a real one?
[cnn-photo-caption image= http://i2.cdn.turner.com/cnn/2008/images/07/11/art.gramm.gi.jpg caption=]
FROM CNN's Jack Cafferty:
John McCain didn't need this. Former senator Phil Gramm, McCain's campaign co-chairman and one of his economic advisers said the U.S. is only going through a "mental recession." No problem.
Gramm also called the United States "a nation of whiners." McCain is actually quite capable of saying stupid things on his own… he really doesn't need Phil Gramm to help him. Gramm later said he was referring to U.S. leaders as "whiners," not ordinary Americans – but that's not what he said. Gramm also stood by his comments on a mental recession, saying we haven't measured negative growth – it's simply all in our minds.
McCain, he couldn't distance himself from the comments fast enough, saying he strongly disagreed and that Gramm didn't speak for him. But Phil Gramm is advising him on the economy and is co-chairing his run for the White House.
Phil Gramm has now made it much more difficult for McCain to prove to the average citizen that he feels their pain, and it reinforces the perception that wealthy Republicans are out of touch with what most Americans are dealing with. Gramm's remarks come after McCain himself said earlier this year that the economy isn't his strong suit and after he insisted the fundamentals of the economy remain strong.
Tell that to the millions of Americans who are grappling with record energy costs and gas prices, the housing and credit crises, a loss of jobs, increase in unemployment, a slumping stock market, inflation, a falling dollar, the drain from two wars and on and on.
It's Friday afternoon and we need your help here…
Here’s my question to you: What's the difference between a "mental" recession and a real one?
Interested to know which ones made it on air?
@jackcafferty on Twitter
Recent Comments