This week brought some hope that the US economy may finally be gaining some traction. Good employment news and positive comments from Warren Buffett on the economy gave some credence to the notion that we may be seeing a path out of the woods.
Of course that path is still fraught with danger. There is unrest in the middle east lifting oil prices above $100/barrel. Other commodities such as metals and food are at historical highs in US dollar terms. The US dollar continues with its malaise, the housing market is still unhealthy, and there's political rancor across cities and states.
Many of these problems can however be surmounted if the job market starts to show improvement. An employed population tends to not only have the money to spend, but also tends to be more optimistic about the future and that translates into economic activity.Robert Hashemian is VP of Web Development for TMCnet.com with a keen interest in financial markets. To read more of Robert’s articles, please visit his columnist page. He also maintains his personal Web site at www.hashemian.com.
Hopefully Buffett is right, but who has $130,000 for even one of his class A shares to ride along with him?