And their formation Gallup’s consumer confidence index is in the doldrums, shouldn’t it be booming?
The major averages enter the final hour with modest gains on little real news. Since Monday the Standard and Poors 500 Index is up 11 points or ½% while the NASDAQ has gained 64 points or 1.3%.
The entrepreneurial spirit has often been hailed as one of the keys to America’s economic success though it has suffered of late. Data from Trading Economics shows that when it comes to starting a business New Zealand, Macedonia and Canada are the 3 easiest countries to start a business in, The US is quite far down the list at #49. When it comes to doing business the top 3 countries are Singapore, New Zealand and Denmark, the US comes in at #7. Perhaps we could learn a thing of two from the fine people of New Zealand when it comes to promoting and maintaining business formation.
I’m not much of one for various confidence indexes as consumers frequently say one thing and do another. Gallup’s Economic Confidence Index has bounced along the bottom now at -17 or so for the better part of a year. Despite new bubbelicious highs for many real estate markets including ours locally and of course the major averages themselves. In a surprising twist concurrent with the stock market record highs we have bond market record highs as well. Given this extremely unusual and rare trifecta in assets price highs, a parade of happy boom time economy stories in the lamestream media and a 4.9% official unemployment rate you would think that confidence polls such as this would be off the charts positive and not looking at spending a year in the doldrums. Something ain’t right, no doubt about that. It’s just a question of what and when do we find out the hard way.
This is Caleb Lawrence Registered Investment Adviser Scotts Valley Drive and Willis Road in the Scotts Valley Plaza, Suite 202 or call me toll free at 888-RICH PIG / 888-742-4744.
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