Is The Economy Recovering?
In our continuing look at whether or not the economy is recovering, we have a few negative notes today that reveal that the economy is not recovering as quickly as many hope.
Those Pesky Jobs Numbers!
While some people (morons) argue that a job-less recovery is a good thing, we continue to lose jobs. This morning’s ADP report shows that the private sector cut over 250,000 jobs in September. We’re going to have to get the job thing going in the right direction if we’re going to justify these hefty stock prices, otherwise I imagine stock prices will have to adjust.
Economic Views From Two Big Players
In the past two days, two major corporations have come out and said that the economy is not recovering very quickly. Yesterday, GE CEO Jeff Immelt came out and said that the US recovery is the slowest in decades, giving evidence that yes, this recession is in fact different.
Today, Wal-Mart came out and made a similar statement, saying that the recovery is going to be a slow one. Another interesting comment from the Wal-Mart chairman is that he believes the global recovery will be led by Asia. Check out his quote:
The world recovery is going to be led by Asia although it’s going to be very challenging. I think this recovery is going to be a slow one.
GE and Wal-Mart are in two very different businesses. GE deals primarily with industrial businesses as well as finance (GE Finance). Wal-Mart has a great feeling for the pulse of the consumer. Negative outlooks on both accounts clearly show that the recovery is going to be slow across the board in my opinion.
We’ll continue to watch for signs of a recovery and the strength of it.