After a rough week for the market the sun came out this weekend with new reports that ought you make people more optimistic coming into the Holiday season. Let me count the ways.
1.A report this weekend says the US economy grew faster than we thought this summer with several respected economists now estimating that the US GDP in the 3rd quarter did not grow by an anemic 2% as estimated a month ago, but 3.2% We will know for sure November 29.
2.This news is driven in part by a report a few days earlier that the U.S. trade deficit narrowed to its lowest level in nearly two years as exports rose in September to a record high.
3.The worse is over in Europe says another weekend news report with the DAX market up 18% for the year.
4.US election is over and there was a clear victor so that oft mentioned ”uncertainty”about what policies will govern the US in coming years will be far fewer. ObamaCare will stay as will Green Energy support. Yes, we know some taxes will be higher and some will stay low but the economy is not going off any cliff but ramping up.
5.US Consumer confidence climbed to a five-year high in November with Michigan consumer sentiment index rising “to 84.9, the fourth straight increase and the highest since July 2007, from 82.6 in October. Economists projected an initial reading of 82.9 for November, according to the median estimate of 71 economists surveyed by Bloomberg.”
6. On Saturday another report says “ China’s sharp economic downturn has ended after trade and consumer spending improved in October but the world’s second-largest economy is not ready for a recovery and exporters face tough conditions, officials said Saturday. The economy should be able to meet the government’s 7.5 percent growth target this year, the chairman of the country’s planning agency told a news conference during a congress of the ruling Communist Party.”
7. Good News For California Schools As Prop 30 Passes. “California voters chose to pass a tax increase on the wealthy and a sales tax increase of a quarter of a cent in a 54 to 46 vote on Prop 30, a ballot initiative designed to bring funding to both K-12 education and curb tuition increases in the state’s higher education system.
“I know some people had some doubts, had some questions – can you really go to people and ask them to raise their tax?” Gov. Jerry Brown (D) said at an election event near the state capitol on Tuesday, according to the San Francisco Chronicle. “Let’s raise our taxes for students, for our schools, for our California dream.”
8. Recovering Real Estate Market: “Home prices and home sales both showed strong annual growth during the third quarter, according to the latest report by the National Association of Realtors. The national median existing single-family home price jumped 7.6 percent from a year ago, to $186,100 — the strongest year-over-year increase for any quarter since first-quarter 2006, when prices were up 9.4 percent from the previous year.
Sales of existing homes rose 10.3 percent during the third quarter, to a seasonally adjusted annual rate of 4.68 million, up from 4.25 million a year ago.
Median prices posted annual gains in 120 of 149 metros tracked, up from 110 metros showing gains in the second quarter of 2012 and 39 metros with price appreciation during the third quarter of 2011.”
9. Gas prices in California continue a downward plunge even after the election with average sales price in the state haven dropped almost 90 cents in a month.
10. More Jobs Advertised:The US West had a total of 1,102,700 online job advertisements in October 2012, an increase of 7,700 from September 2012 to October 2012. The Conference Board reports; “California, the largest State, gained 1,200 in October and was up 67,300, or 14.5 percent, in the first ten months of 2012.”