The Economy Is Getting There
07/22/2013 8:30 am EST
The rich may be getting richer and the poor may be getting poorer, but with the election and fiscal cliff past us, we can start to grow and prosper again, says Louis Navellier.
Louis, there are pockets of the economy that seem like they’re slowly, slowly, slowly getting a little bit better. Each week, it seems like the unemployment numbers are a little bit better. We just recently had a pretty good retail sales number that better than expected. But fundamentally, it’s still pretty slow.
Yes, and it depends where you are. If you’re in Texas, it’s booming.
Right, or North Dakota.
Correct. There’s a shortage of women in North Dakota.
I heard that; I may have to go.
That’s their biggest problem, you know? Anyway, we’re not hitting on all cylinders.
I worked for the Fed for four years. It’s fascinating to watch these Fed minutes, because under Greenspan he shut them all up and he controlled everything. Under Ben Bernanke, he lets them go at it.
What’s happening is the doves, which are the do-gooders, they’re in control of the Fed now. But the hawks come in and say hey, you know, so-and-so, you’re just making the rich richer.
If you own a home or you own stocks, they’re going up from all the Fed pumping and it’s not really filtering down to create the jobs. When we do have a big drop in unemployment, it’s because we keep losing people out of the workforce.
Right. They’re not looking for a job anymore.
Correct. Correct. So, you’ve got this thing where disability claims have exceeded payroll job growth every month for the last three and a half years, except for two months. You’ve got record food stamps.
The banks will lend money to people who have money, so the people that have money are buying homes to rent to the other people. I don’t think that’s what they intended. But the Fed is really struggling with this unemployment mandate they have, and it’s fascinating to see what’s happening.
All I know is the rich are getting richer, and the pump is on, and it’s a fascinating environment. Confidence is clearly getting better. It’s taking way too long. If you want me to be critical, the Fed’s blowing two little bubbles now. They’re blowing a little housing bubble; they’re blowing a little bit of a market bubble. But as long as they blow, we’re OK.
Right. Well, is there a catalyst? I mean, I keep trying to think; is there a catalyst that will make us just jump to the next level? Because it’s just these little baby steps, and we just are like spinning in place.
It looks like it’s going to be very slow and steady. I mean, obviously what’s driven the market this year is whatever we were scared of—the fiscal cliff, the deficit ceiling.
A lot of these have been wag the dog events from manufacturing and sequestration. I mean, we’re still here. You know? We went off the cliff.
Earnings are decent. I mean, they’re not barnburners like they were in 2008, but how could they be?
Correct. And also, whatever we were scared of; it wasn’t as bad as we feared. I mean, taxes went up, but not as much as we feared. And they’re locked in.
Now businesses can plan, and move on, and prosper. It’s just time to be happy. It’s not healthy to be depressed. You know, when you would turn on the TV late last year, fiscal cliff, fiscal cliff, and well, we’re all here!
And if you’re in the market, you’re making money.
Correct. And life goes on.
I think it was good to get the election behind us. It was good to get the uncertainty over now. It’s just time to grow and prosper. I really like the market right now. I think it’s incredibly healthy.