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

Culver prom limo ..
In The News:

An artificial intelligence-powered home security system can fire paintballs and tear gas at trespassers. The camera identifies human faces and animals.
Technology expert Kim Komando gives her tips and tricks on enhancing your user experience a smartphone and other devices you use everyday.
A new camera called NUCA uses artificial intelligence to create deepfake photos of subjects by stripping away clothing in close to real time.
The Kimberley Kube trail-ready camper has a compact but spacious design and combines luxury, functionality and ruggedness for a weekend getaway.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Emails instructing you to reset your password for an account may be legitimate, or they may be scams. Kurt "CyberGuy" Knutsson explains.
Northrop Grumman's Manta Ray uncrewed underwater vehicle aims to revolutionize undersea missions — it glides through the ocean without human assistance.
Learn how to work Google's calendar application to streamline and organize your daily tasks from technology expert Kim Komando.
If you do not want Facebook to have automatic access to your private photos, follow our tips to protect yourself. Kurt “CyberGuy" Knutsson shows you how.
Kurt “CyberGuy" Knutsson goes into detail about Apple’s recent iOS update that allows iPhone users to instantly translate spoken language simply by using the Action Button.
Safeguarding your digital life with a reliable physical backup isn't just a precaution, it's a necessity. Kurt “CyberGuy" Knutsson provides the essential backup checklist.
Kurt “CyberGuy" Knutsson reveals how a Redditor exposed false recycling claims at their apartment, highlighting a report that only 21% of U.S. recyclables are processed.
Kurt "CyberGuy" Knutsson offers a travel toolkit featuring five technology tools to help you with booking flights and hotels for your summer vacation.
The bubble behind the clock on your iPhone can appear in different colors. Kurt "CyberGuy" Knutsson explains what each of those colors mean.
Scammers are using the power of artificial intelligence to mimic voices of people and are using the fake voices to commit crimes, like kidnappings.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Tech guru Kurt "CyberGuy" Knutsson explains the science behind the Invisibility Shield, a 6-foot shield that makes people become invisible.
The International Olympic Committee on Friday announced plans to use AI in various Olympic aspects, including athlete identification, training and judging.
Tech guru Kurt "CyberGuy" Knutsson explains an easy trick to avoid squinting while working or surfing the web by zooming in on your personal computer.
Streaming giant Roku has recently been targeted by a pair of cyberattacks, and the company confirmed over a half million Roku accounts were compromised.
The Land Aircraft Carrier combines an all-terrain, six-wheeled vehicle with a two-seat aircraft, which features electric vertical takeoff and landing.
The European Union has sent TikTok a "request for information" on the video sharing platform's newest app, TikTok Lite, under the Digital Services Act, with the aim to clean up social media.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
The FBI is warning the public about a recent phishing scam via text that claims its targets owe money in Pennsylvania for unpaid road toll charges.
Your Apple Music settings may be revealing to your contacts what you're listening to. Kurt "CyberGuy" Knutsson explains the process to change those settings.

The Stock Trading Plan - Why You Must Have One To Trade Successfully

This is the continuing story of our two imaginary traders,... Read More

Protect Your 401K

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

Municipal Bonds

Because there are so many stocks that are NOT paying... Read More

The Problem With Hedge Funds

Are hedge funds a suitable investment for you? Hedge funds... Read More

Duck

Duck! No I don't mean a quack, quack. I meant... Read More

Complacency

During the month of January the Dow Jones Industrial Average,... Read More

Stock Options Trading Strategies - Lean

Professional stock options traders use the term lean to refer... Read More

Top 25 Growth Funds

On Monday, November 25, 2000 Investor's Business Daily listed on... Read More

Stock Market Investing: Knowing When (and when not) to Sell

One of the greatest challenges of investing in stocks is... Read More

Invest, Be Wrong, and Make Money in the Stock Market

I have been trading for several decades and was an... Read More

Economists #2

Economists know more about how the fragments of society work... Read More

Hill of Hope

Just about now everyone is confused as to which way... Read More

How To Make, And Keep, Money Trading Stocks

If you are serious about making and keeping money by... Read More

Defining a Long-Term Investment in the Stock Market

For some "long term" would mean holding a stock position... Read More

How to Make Big Money Safely in Stock Market

(1) Stock Market is Tough Place to Make Any Money... Read More

Mousetrap

The spring-loaded rat catcher is the ultimate low-tech device invented... Read More

How to Pay Less and Get More: Discount Broker vs Professional

How do you invest? What do you really pay? At... Read More

A Good Fund Manager

Every Wall Street analyst, financial planner and broker will tell... Read More

Buy and Hold: How to Perpetuate Your Investment Losses

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

Successful Trading ? Taking Profits - Part 2

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

An Old Proverb for Investing

"If you don't know where you are going, any road... Read More

I Love You, Warren Buffet

Sometime around 1980, can't remember exactly, there was a flight... Read More

Look Out The Window

Quick, look out the window. It's raining. No, the sun's... Read More

Stock Market Volatility

In my opinion, due to the volatility of stock market... Read More

Losses, not Profits, will Stop You from Trading in the Market

Should the market turn against you, it is important that... Read More

Wood Dale limo ..