Economic Outlook – Was March the Stock Market Bottom?
Posted on | September 7, 2009 | 1 Comment
On March 9th, 2009, the S&P 500 hit the current bottom of 676. Many wondered if the stock market was ever going to see significant gains again in their lifetimes. In less than three weeks after that dreadful beginning to March, the index increased by over 20%. The question that must be answered is “is this another bear market rally or a dead cat bounce?” We will not know the answer to this for quite some time as we might see lower lows sometime in the distant future. If the unemployment rate and new housing supply starts to decrease, it is likely that the stock market did hit a bottom in March.
No one knows when these two pieces of economic data will turn in favor of the American consumer, but we can hope it is soon. The biggest worry that I have is the fact that corporations continue to lay off more people. When Google is laying off workers, you know the economy is rough. At one point, we HAVE to see a bottom put in and hopefully that is sooner rather than later. President Obama is doing everything in his power to make this happen, but is he doing the right things?
Once again, no one will know those answers for quite some time but he is trying something different. Obviously the things that went on over the last few years were not successful so he is bringing change to our country. The question will remain if that change is good or bad.
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October 5th, 2009 @ 8:59 am
[...] Stock market trends are a good gauge of what can happen in the future. There is a fair amount of buzz right now about the market. September did show a small fall in the stock market. Most people do not think it will drop to the 12 year lows we saw in March, but because of the fall season and the routine of school and work, there may be quite a few noticeable changes. [...]