several other good indicators as well. savings rate higher (of course this viewed as a neg.), oil futures drop, business inventories continue to drop, not much on korea and iran settled down, MJ dies and Obama focused on his death, china bounces back, feds did nothing with rates and inflation not a threat. although nothing really signals a buy yet, oil stocks getting to an attractive price especially large caps with huge div. small caps seem to out perform mid/large caps. banks seesawing but expect up-side again on the qtr. staying away from healthcare and tech is wating to be bought up at these levels. URE could trade flat for the next few weeks. we can afford to wait. I added another 15k at 3.31 still below my cost basis but i see URE ramping up later this summer or early fall as the # pour in indicating more stabiliy.
You can look at it 2 different ways, neither of which are encouraging.
It is a fact that 150K new jobs are required every month just to keep up with population. Judging from that metric, the population is underemployed since the last economic recovery rarely ever exceeded that average. The stagnation of incomes for the middle and lower classes and the ever widening wealth gap between the rich and the rest would certainly suggest underemployment.
Now if there was indeed overemployment, which I highly doubt, then we certainly were overspending With the elimination of these "unnecessary" income-generating positions, our society would have less consumers and therefore need fewer malls or stores.
You may see stability in the stock price, but what exactly in the world is indicating stability? Unemployment will continue to grow, and a higher savings rate means less consumer spending overall. Companies are only beating overly dire estimates by cutting costs. Where is the future growth?