The unemployment rate continues to rise (it is at the highest level since the 1980's). Producer prices fell again. Companies are reporting higher profits year over year, and beating dramatically lowered expectations. Though, companies are NOT increasing their sales. In fact top line revenue growth is flat to down just over the last quarter.
The reason why corporate profits are on the rise, is simply by cutting JOBS. Again, I must point out that the only way we will AVOID a double dip recession in the future is for consumer demand to increase for homes, cars and entertainment. Currently, this does not exist.
Bias money managers and the media are driving this market to levels that can not be sustained in the short run. Be prepared for a significant correction within the financial markets over the next several months. Non-retirement investors should not invest new cash or existing cash into this market until there is a significant pull-back.
By David A. Mascio
