I woke up this morning to news on two separate channels with experts indicating that the "recession is over". Liz Ann Sonders, Chief Investment Strategist for Charles Schwab says that the recession is over based on the "turn" rather than the trend. She defines the turn as the definitive change in direction of various economic indicators. Forbes Magazine declared as recently as last week that the recession is over as well.
JMO: I've been writing for more than a month that 1. optimism is the first sign of an economic recovery, and 2. that we are seeing signs of that optimism in the increase in home buying by end-users rather than investors. We need to keep in mind that the end of a recession does not mean that all is well in the world. We still have the very real situation of unemployment (whether it is continuing to rise or not does not help those that are currently unemployed) as well as the foreclosure problem (whether there is a moratorium or modifications or not, does not help those that have already been displaced from their homes). Overall, we must acknowledge the positive indicators as well as the negative in order to have a truly objective view of our situation.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment