http://money.cnn.com/2014/01/21/investing/stocks-markets/index.html?iid=H_BN_News
In keeping with recent class discussions about GDP, this article, which highlights major increases and decreases in the stock market seems appropriate. Some points of interest include BlackBerry, with a huge jump now holding the spot of best performing tech company so far this year. Expeida saw a significant decrease in value of stocks, due in part to decreased "search visibility," but perhaps also due to the fact that when money is scarce vacations are one of the first things to go. Overall, earnings are up, but not as much as predicted. This is encouraging in terms of economic recovery, but a little worrisome that growth is still slow. Hopefully the trend of growth continues and a little more rapidly at that.
I think that it is far too early to have a optimistic/pessimistic viewpoint on whether or not growth is going to increase. Going back to Blackberry and their sudden rise, it seems that anything could happen in terms of growth or lack thereof. I remember back in Econ 110 last semester talking about how Blackberry has found themselves to be nearly obsolete when it comes to phone technology, but as I said before, you never truly know what the future holds.
ReplyDeleteI agree in general that it will be hard to predict the level of growth, but it seems like the US economy will grow positively this year. The IMF and World Bank both predict small increases in US GDP growth. Aside from GDP, the U.S. Conference of Mayors predicts that most metropolitan areas will see an increase in growth as employment is increasing for careers such as police and firefighters.
DeleteAlmost every time I've read an article about growth recently this phrase somehow finds its way in "earnings are up, but not as much as predicted". Its been almost 6 years since the recession but that event in itself changed the way companies and stock markets look at the economy. Everyone has been a little skeptical in terms of being optimistic of the future. Companies have been trying to stay relevant and competitive by cutting costs and becoming more efficient, at the same time their growth isn't up to par due to complete change in consumer confidence not only with the general public but also in B2B transactions. Companies don't wanna be in a bubble anymore and their actions are heavily dependent on future predictions which in reality are not as great as portrayed. Growth is surely there but its slow and in my opinion that is a practical outlook. Its almost a month since this year started so stating BlackBerry as the best stock of the year is a long shot. The company has become irrelevant in the smartphone market space and signs of it making a comeback are scarce,
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