Yet, stock market prices are dependent upon the growth of the economy and if the longer run projection for the economy , and the labor market, remains rather dismal, it is hard to believe that future earnings can justify such a high level even though the Fed continues to keep interest rates at such a low level.
The second quarter of 2015 is just about to end and when it does, U.S. economy will have gone through 24 quarters of economic recovery since the end of the Great Recession. For 23 quarters, the compound rate of growth of the economy has been at an annual rate of 2.2%. The numbers from the 24th quarter will not change this result.
Yet, stock market prices are dependent upon the growth of the economy and if the longer run projection for the economy , and the labor market, remains rather dismal, it is hard to believe that future earnings can justify such a high level even though the Fed continues to keep interest rates at such a low level.
ReplyDeleteThe second quarter of 2015 is just about to end and when it does, U.S. economy will have gone through 24 quarters of economic recovery since the end of the Great Recession. For 23 quarters, the compound rate of growth of the economy has been at an annual rate of 2.2%. The numbers from the 24th quarter will not change this result.