Its Better

Question: How does it get better when it gets worse?

Last week we had a jobs report from Washington that there were fewer jobs created than they had anticipated, but the stock market took that as good news and the DOW had a strong rally. WOW! The bad news somehow turned into good news because the unemployment rate dropped one tenth of one percent.

Wait a minute. We had fewer employed yet the unemployment rate went down. How can that be? It seems that if you have been out of work for a while and your unemployment benefits have run out and you have become so discouraged you are no longer looking for work you are not counted as unemployed. You should read that sentence again. This is government statistics to make you think that black is white.

It is pointed out that many in that category have gone into business for themselves so they don't count ? as they should not. Remember that people work to provide income and most folks work for other folks. Usually new businesses take about 18 months to get to break even so these entrepreneurs must eat of their savings until new purchasing power is realized. (I know. I've been there.) Unfortunately, 80% of new businesses fail within the first 5 years. (I've been there too.)

It is amazing that the stock market can find enough new money to propel it higher. Where is all this cash coming from? You can thank Sir Alan Greenspan, head of the Federal Reserve. He has been flooding the economy with cash so banks will have cheap money to make loans to businesses yet when I look at the trend of Commercial Bank Loans for the past 2 years they have been steadily declining. Banks want to loan, but businesses don't want to increase their borrowing for expansion. No expansion, no new jobs created.

Why don't the businesses want to buy new machinery to expand their production and hire new people? Because they have excess production capacity now. According to business surveys most companies are only running their plants at 75% of capacity. When you have 100 machines of which only 75 are working why would anyone buy more to produce nothing?

Yet the stock market keeps going up. Why? Investors believe, rightly or wrongly, that there is light at the end of the tunnel. Things will get better. They think world buying will pick up and capacity utilization will increase to the point more machines and workers will be hired. The market is going up on anticipation.

Now you've got it. The bad news is really good news. And the stock market always comes back.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

http://www.mutualfundmagic.com; 1-888-345-7870

whole house cleaning Deerfield ..
In The News:

Chinese hackers used Anthropic's Claude AI to launch autonomous cyberattacks on 30 organizations worldwide, marking a major shift in cybersecurity threats.
Apple's new Sleep Score feature gives you a rating for your nightly rest quality. Learn how to set it up on your Apple Watch and iPhone today.
Essential phone settings to enable before losing your device, including Find My network, location services and security features for iPhone and Android.
The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.
Cybersecurity research shows weak passwords remain a major threat, with simple patterns and number sequences putting millions of accounts at risk.
New Android malware BankBot YNRK silences phones, steals banking data and drains crypto wallets automatically. Learn how this advanced threat works.
FDA approves first human trial for Paradromics' brain-computer interface that could restore speech for paralyzed patients through neural technology.
New phishing platform QRR targets Microsoft 365 users across 1,000 domains in 90 countries. Learn how to spot fake login pages and protect your accounts.
OpenTable now uses AI to track your dining habits and share insights with restaurants. Learn what data they collect and how to protect your privacy.
Google's discontinued Nest thermostats still secretly upload home data to company servers despite losing smart features, raising serious privacy concerns.
New Android malware NGate steals NFC payment codes in real-time, allowing criminals to withdraw cash from ATMs without your card. Learn protection tips.
DoorDash confirms data breach exposing customer names, emails, addresses after social engineering attack. Learn how to protect yourself from scams.
Concerned about Google's AI scanning your Gmail? Learn how to disable Gemini features that access your emails, Drive files and Chat messages for privacy.
Google warns Android users about dangerous fake VPN apps hiding malware that steals passwords, banking details and personal data from phones and tablets.
Apple's digital passport feature lets iPhone users breeze through TSA checkpoints this holiday season using Digital ID technology at 250+ airports.
A new phishing scam targets family photos with fake "Cloud Storage Full" alerts. Criminals steal credit card information through fake sites. Learn protection tips.
South Korean scientists create ultra-thin fabric muscles that turn clothes into robotic assistants, lifting 33 pounds while weighing under half an ounce.
Archer Aviation has acquired Hawthorne Airport for $126M to launch an LA air taxi network ahead of the 2028 Olympics, featuring AI-powered eVTOL operations and next-gen aviation tech.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Fake AI apps disguised as "ChatGPT" and "DALLĀ·E" are flooding app stores with dangerous malware that steals data and monitors users without detection.
Fake buyers demand specific vehicle reports from unknown sites to steal credit card information from car sellers, but warning signs can help identify these scams before paying.
Android users can now manage apps across multiple devices more easily with Google Play Store's updated remote uninstall button in the latest update.
NASA's Perseverance rover discovers shiny metallic rock on Mars that could be a meteorite from an ancient asteroid, containing high levels of iron and nickel.
Holiday scams spike during Black Friday and Cyber Monday as criminals exploit your leaked personal data. Learn how to protect yourself from fake stores and phishing.
Commerce Department proposes TP-Link router ban over Chinese security risks. Learn how this potential prohibition could affect your home network and devices.

Why Is The Macedonian Stock Exchange Unsuccessful?

The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More

Buying New Issues

Has your broker been calling you recently with the "great... Read More

Psychology ? How to Reduce Negative Thoughts Relating to Trading?

The thinking process of the brain relating to the... Read More

Protect Your 401K

Checked your 401K lately? Going back to about a year... Read More

Buy and Hold: How to Perpetuate Your Investment Losses

A recent cartoon in my daily newspaper showed two guys... Read More

The 401(K): How The Insider Has Stolen Your Retirement!

Mutual funds were moderately successful in creating a presence in... Read More

Investment Attorneys and Garbage Stocks

How is it possible that trash Companies are posting less... Read More

Boiler Room 7/17/00

On Friday or Saturday evening my wife gets a movie... Read More

Mutual Fund Ball and Chain

The broker told me not to sell because the mutual... Read More

A Stock Market Investment Strategy

I feel that an investment strategy in the stock market... Read More

When Should I Sell?

People are always asking me when should I sell my... Read More

Trading Tips No 5: Stock Trading Curve Drawdown and Commitment

All stock trading and investing methods must deal with the... Read More

Buying Mutual Funds

It looks like the market is ready to start up... Read More

Successful Trading ? Taking Profits - Part 2

Suppose your position has made a big move and you... Read More

I Love To Lose Money

Well, not really. What I mean is I don't mind... Read More

Diversification

Wall Street's watchword has always been diversification, but what does... Read More

Emotional Maturity

If you are going to be a winner in the... Read More

Adding Funds

Someday you may want to retire and continue to live... Read More

Complacency Indicator

If you haven't heard of the technical indicator with the... Read More

Eternal Sunshine

There is a current movie entitled "Eternal Sunshine of the... Read More

Again With the Bubbles?

A few years back ? it seems like an eternity... Read More

Choosing A Fund

For years I have been saying you must have a... Read More

Two for the Money

Look back over the years and try to remember how... Read More

Race Horses and Mutual Funds

For years investors have been taught to look into the... Read More

Dividends

When is a dividend not a dividend?The latest thing "conservative"... Read More

home cleaning services Des Plaines ..