In the “bad news is good news” economy that’s at the root of Obamanomics, the market has been rattled the last few days by signs that the economy is finally, again…did I say finally, again?... growing.
Well at least that’s the story THIS week.
I stopped counting the number of times that economy finally started growing.
Still, the market views robust numbers in the manufacturing sector released this week as cautionary.
Caution for the market that is, while welcome news to you and me.
“The Institute for Supply Management reported on Monday that the U.S. manufacturing sector expanded in November for the sixth consecutive month,” reports the Wall Street Journal, “with the PMI index rising to 57.3 from October's reading of 56.4. The November reading was not only the highest in 2013, but also beat analysts' estimate of a decline to 55.2.”
A Republican Congress cut back on budget increases in the spring—also known as sequester-- and, suddenly, six months later the economy is gaining steam. A Republican Congress shutdown the government for 16 days in October and suddenly, one month later, manufacturing posts it’s highest number for 2013.
Makes you wonder what all the “sequester is the end of the world” and the “government shutdown is the end of the world” talk was all about.
I mean besides grandstanding by Democrats who have no idea whatsoever what to do with the largest, greatest, most impressive economic society ever created in the history of mankind.
Democrats should try doing nothing with it and see how that works out.
Back in the stock market, if economic growth keeps up, interest rates will continue to rise which is bad for bonds and bad for stocks and bad for government debt... and apparently bad for government executives.
And this isn’t the end of good news for the economy. Or is that bad news?
Jobs are starting to stabilize, after eleven months of Obamacare-created distortions, also thanks to Republicans.
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