The Corner Store

Is the economy really getting better?

It sure doesn’t feel that way. Unemployment remains high nationally, and in some areas it’s really high. Sure New Hampshire is doing better, but everyone seems to know someone that’s been affected by the recession. And lots of people are upside down on their mortgages. When will the bad news end?

Surprisingly, help is on its way. A spate of economic indicators are pointing towards better things ahead. For five months now people have been buying more cars. Wages are going up—not dramatically, but they are higher. Factory orders are higher. Banks are reporting that demand for both consumer loans and commercial loans is rising. Consumer confidence is rising, so personal consumption is going up as well.

The only thing that isn’t growing so fast as is the jobs market. Because of the storms last month the picture is muddled, but right now the employment picture still looks bleak. During the downturn we lost some 9 million jobs. So far, only one million have come back. We should be thankful that they’re growing, but at this pace of expansion it will take until 2020 before we get back to where we were in 2008.

The good news is that we shouldn’t have to wait that long. There are indications that improvements in the labor market are just around the corner. The latest jobs report was distorted by the storm and the Labor Department’s annual benchmark revisions, but putting the pieces together it looks like growth is about to shift into a higher gear.

This is what recovery feels like. You’re not there and not there, then suddenly you are. That’s what’s likely to happen this time.

Douglas R. Tengdin, CFA
Chief Investment Officer
Hit reply if you have any questions—I read them all!

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By | 2017-07-17T12:35:17+00:00 February 6th, 2011|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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