Here's an interesting piece from Bill George's blog:
Last month the Dow hit 10,000 for the first time since the 2008 financial crisis. That same day I wrote a blog cautioning those who celebrated the number as a sign of post-recession resurgence.Last Friday the Department of Labor released its latest report. The news is decidedly grim. Despite a climbing Dow and increased investor confidence, unemployment currently hovers at 10.2% (17.5%+ if you consider underemployed workers).
Last night the Dow rallied again to close at 10,226.94, its highest finish since Oct. 3, 2008. Meanwhile, the predicament of the American worker remains the same. By year’s end, 9.36 million men and women will be out of a job. The Dow’s showing, though encouraging, doesn’t reflect the struggle to survive on Main Street. In fact, there is an unfortunate inverse relationship emerging: as the Dow increases, the number of jobs decreases. As financial markets improve, the real economy’s condition worsens.It is not that the Dow increase doesn’t reflect any improvement – it’s a positive sign that investor confidence is on the rise. But to tout it as the first charge of an 18-year bull market (as pundits are doing in likening our situation to the 1983 market upswing) is irresponsible and misleading.
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