Is the Economy in the U.S. Getting Better?

You may wonder why I am taking the liberty to talk today about investment and the Dow Jones. Well the reason is simple. I had a reference question regarding the U.S. stock market and whether it is safe to invest. I am not an investors and even if I were I would not be able to provide any individual with advise or recommendation on the subject. However as a librarian it is my obligation to assist the patron in finding source of information that he can use to answer his question provided that the information is accurate and reliable.  So, I dig up some information and provided the patron with the most recent news on the U.S. stock market.

 In September 2008, the stock market took a plunge the Dow Jones hit the worst point drop ever 777.68 after learning that the U.S. Senate rejected the billion bank bailout needed at the time, one month later the Senate finally approves the bailout. Since 2008 the U.S. economy has been spiraling many of us have wondered whether we would ever see the light at the end of the tunnel. We maybe finally seeing some progress and hopefully the light will start shining again

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 Is the economy in the U.S. getting better?  Yesterday, CNN reported that U.S. Stocks rose allowing for investors for the first time to believe that the housing and financial crises may finally be behind us.  The Dow Jones Industrial Average had closed at a record high of 15,409.39, after gaining more than 100 points, or 0.7% at the same time, the yield on the 10-year Treasury note rose above 2.1% - its highest level in more than a year.  The Housing market showed significant improvement as consumer confident hit a 5 year high and housing prices rose a better than expected 10.2% during the first quarter reported.  This has been the biggest increase since 2007 and helped boost the entire sector. In other news that hit the headlines during the month of May was that gold prices were going down.  A stronger dollar is the cause of gold prices to go down. This may not be good news for Gold Investors. But for all of us normal people, and general consumers it is good news. It is no longer a rumor that that the U.S. Dollar is starting to measure up to other currency. It is moving slowly but surely. The strength in the U.S. Stock market is bringing back investors who are confident and are willing to buy in U.S. Stocks.  For foreign investors this equals to selling their currencies to buy dollars, and then put them to work in the markets, were the demand is for dollars. This creates extra demand for U.S. dollars.

Like with any investments, it is normal to see the U.S. stock market, the Dow Jones goes from + to – but this does not mean that we are back to a shrinking economy. It just means that there is still more talk that needs to happen. This morning as speculations that the Federal Reserve could restrict its bond buying the Dow Jones fell nearly 100 points. However, the 10 – year Treasury note rose 2.15%. So what does this mean that there is still hope and depending on your interest on what is happening in the financial market, today maybe a good day for you or a bad day. The one thing we all need to be focusing on that is in getting our economy going so that more money is invested which = to more job be created.  So, what do you think, is the U.S. economy getting better?

From your Traveling Librarian, always a librarian!

“Life is made up of small wonders and big Ahhs! For every experience there is always something to learn and for others to treasure!”