Economy roaring: The Dow is back!
Despite what you hear from the Democrats and the mainstream media, the American economy is booming. The Dow-Jones Industrial Average is approaching it’s all-time high set in 2000 before the dot-com bust. During the Clinton years, the swelling stock market — based on pipe dreams — was the lead story every night. All we heard about were dot-com startups with only 6 guys, an idea on a PowerPoint presentation, and a billion dollars in startup capital. Unfortunately, most of those dot-coms went bust and the stock market bubble burst because of it.
However, the mainstream media is finally beginning to recognize that we are in economic good times right now and that the economy is not based on smoke and mirrors. From the Christian Science Monitor:
Behind the rebound is a solid economy, emphasized last Friday when the Commerce Department reported that the nation’s gross domestic product grew at a swift 4.8 percent, the best growth in 2-1/2 years. Indeed, the healthy economy is pumping up corporate earnings, which have been growing at double-digit rates. Some of the fastest-growing engines of economic growth are at the nation’s smallest companies, whose stocks have averaged about a 20 percent gain per year for the past five years.
Some analysts expect the next leg in the economy to be powered by the capital spending of cash-rich companies.
“The economy is fundamentally sound,” says Scott Brown, chief economist at Raymond James & Associates in St. Petersburg, Fla. “Even though economists have been expecting the economy to slow, recent data suggest it’s not that soft.”
Last week, companies from Chevron to Microsoft to GlaxoSmithKline reported healthy earnings increases. “The last few years, Wall Street analysts have continued to underestimate earnings, and that’s true today. The majority of companies are beating the estimates,” says Art Nunes of IMS Capital Management in Portland, Ore.
Now if only Bush and his tax cuts would get the credit…
(Open trackbacks sent to Freedom Watch, The Conservative Cat, Is It Just Me?, Common Folk Using Common Sense, Right Wing Nation)
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