The stock market have reached 10,000 points in Dow Jones Industrial Average, Gold is near $1,050.00 and crude oil is near $ 78.00 every trader and investor who has substantial money out there is jubilant and excited but the main engine of the economy-the consumers are in no mood to celebrate. What is going on? Are we looking at undue excitement without the major confidence index of the consumers down in the dumps?
As I have been pointing out again and again, we need job growth to accompany all this euphoria about the economy and until this is done, all these highs are just that pure speculation (only my opinion).
I don’t know who is drumming up these figures, but the consumer confidence is still low compared to historical standards. People have lost tons of money in real estate and stock market and they are in no mood to invest now. Consider also the fact that the news came out yesterday that most of the biggest companies are sitting on almost $1 trillion in cash in their balance sheets for the rainy day (I guess). So instead of investing that cash and generating some jobs, they are hoarding up cash because of the uncertainty which is right out there if you can see.
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