Well, most people woke up this morning to a new day realizing that their is a celebration of our countries freedom this weekend. Yes, it's almost here with July 4th parades, fireworks displays,cookouts, combined with general relaxation with family and friends. I am writing this Thursday afternoon to inform everyone to have a happy holiday weekend. Their is definitely defiant market swing this week as a result of the Federal Reserve changes in the discount rates. This governs many different economic factors that are important to know which I will address in a few minutes. The economic GDP this quarter is showing slow growth with a tracking and projected growth of about 2.8 on the index of leading indicators. The stock market tickers does tell the story with investors feeling the pressure from sluggishness in the economy overall. The bright spot is leading companies like Boeing,Apple,IBM,Bank America Corp.,and other competitive global businesses are reporting new posted above average earnings growth for this quarter. A broad economic overview shows the trade deficit with our international partners closing the gap so that America is in better shape compared to our industrial overseas partners like Germany,Japan,England,France etc. The jobs situation is still a problem with more people having their jobs phased out or outsourced to other foreign competitors. Some of the economic problems in America is due a change from manufacturing to a high technology combined with services a based economy. This trend doesn't seem to be showing any signs of slowing for the immediate future. When you are looking at how the market reaction is on a chart basis you can clearly see the economic picture in clear focus. We do have some winners in business with certainly the same in markets in technology stocks but overall things are still not a rosy picture for business and investment this quarter. Looking ahead on projected gains for next quarter we will have to see what impact of improvements the economy will do..
You can look for the next quarter to be mixed results with some corporate giants continuing to post gains while other parts of the economy remain at a stable 2.1 percent of GDP output. This reflects a drop stock profitability in combination with a increase in a return to higher inflation for the next fiscal quarter. The Federal Reserve will lower the discount rates another full 1 point or maybe more in a effort to jump start the economy. This will certainly help the economy to begin growth at a larger rate of GDP overall for next quarter including the rest of the year..
Have a Great Day..
Your comments are welcome. .
