Dow Closes Above 13,000 for First Time in History

Couple questions/things that I would like you guys/gals with the background to expand apon.

First, most people believe the DJIA is a "thermometer" of the American economy, but from what I can tell it seems to be more of a "thermometer" of company profits. Also, if I'm not mistaken, it would seem that a good portion of the companies that make up the DJIA are not American but Multi-National companies. Using such a small number of companies to gauge the overall economy would give you a very narrow view of the overall picture. If you can read the DJIA speak what does it really say?

Second, are there any better indicators other than DJIA or combinations to really guage the overall economy?

Last, I have worked for myself for nearly two decades. In my business I interact with several hundred other businesses every week and all the pundits talk of "rebounding economy", "great economy", "profits on the rise" etc....doesn't match up to what I see everyday in the real world. More small to medium businesses, from my experience, are closing then I've seen in anytime in the last twenty years. The average Joe is getting pinced out. I've been looking to fill a couple "entry level" positions and in years past I'd have 90% 18-24 year olds, with the very rare 37+. In the last two years it's been 90% upper 30's to mid 50's that have been applying for any openings. These guys/gals (w/and w/out families, degrees/adv.degrees/no degrees) can't find work anywhere! (Trying not to bring politics into this but in a twisted way it reminds me of the "great economy and low unemployment" of the 80's- Remember when all those jobs out there where filled and most people had 2-3 of them?)
So, where is this "great economy"? I keep looking around for the "camels nose" to pop into the tent, but where is the camel? Better yet where is the tent?

Keeping it Casual for all these years.

It seems a little strange that the DOW Jones has hit new highs when the housing market is not doing well at all (I'm being nice!), inflation problems, trade deficits, adjustments of US economic growth to be lower than expected, and very expensive wars that have no end in sight.

It just seems "strange".



[edit on 26-4-2007 by RetinoidReceptor]

I dont' like what I sense about this guys, www.dailyreckoning.com... there is so much more to this than the false front impression this is giving. Here is a guy that I have found to hits the mark alot and is fun to read;www.dailyreckoning.com... Not sure how my first c@p will look but it is the content I want you to see, like I said I just do not trust this pumped up action and feel it could signal an even bigger event on the near horrizon. Just my paranoid or aware preception.

Originally posted by antar
but it is the content I want you to see, like I said I just do not trust this pumped up action and feel it could signal an even bigger event on the near horrizon. Just my paranoid or aware preception.

Bear in mind that's a gold-bug site. They're ALWAYS warning of dire times ahead, so as to encourge people into the "safe haven" of gold. That's not to say everything's rosy, but certainly these sites tend to paint a somewhat biased picture.

Still, thanks for the link.. it's not one I'd come across before.

US gross domestic product (GDP) rose just 1.3% in the first three months of the year, down from 2.5% in the previous quarter.

news.bbc.co.uk...

[edit on 27-4-2007 by infinite]

I don't understand why if ecomic growth is slowing and construction is at best flat in most area, and there are no true supply disruptions, why are these fools still running up the price of commodities.

With inflation rising again, and slow ecenomic growth, I wouldn't be surprised if the C2C "prophet" was right.

May 2007 Update of "The Second Great Depression"
12:30 PM, April 30, 2007

But most important of all is that we have only seen the beginning of the housing meltdown. Many of the adjustable rate loans will not be reset until the later part of this year, and as noted in my last month’s update, homes will likely drop another 25% before prices start to level off. By the end of this year, investors will start to panic and the market will begin to drop.

Full Text

One of my favorite martians comments on March US economic data, and shares his general short-term outlook.

Understandably, Warren Brussee may seem a bit over-the-top to some, but the forecasts outlined in his book published in 2005; The Second Great Depression 2007-2020...shows that he has some vision in my opinion.

Peace &
Good Fortune
OBE1