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Good Holiday Numbers Not So Good For The Turkey

November 24, 2010 – 6:31 pm

Unemployment claims fell by 34,000 as reported this morning and that makes for a two year low. The expectation was for a fall of 4,000. Does this mean we are finally going to see some job growth? Maybe not because there is a big question as to the permanency of those jobs as we enter the holiday season.

Also, out this morning were income and spending numbers. Both were up but new home construction was surprisingly down. The housing number reflects the weakest part of our economy and the reason why unemployment is likely to remain high. Jobs in the construction industry are nowhere to be found. Banks are extremely strict with very high loan standards and those people that could or should buy a home because of the historic low interest rates and very high affordability are not interested. Until that changes our economy is going to grow very slowly.

However, do not confuse stock market performance with high economic growth. The stock market will rise and has risen in a slow growth U.S. environment. We are coming to the end of our correction and that bodes well for a very pleasant holiday season. Meanwhile have a great Thanksgiving.

Steve Peasley

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