Tuesday, April 7, 2015

ISM Manufacturing Index

The ISM is trailing lower for the last six months negating the glimmers of hope. As a rule of thumb, when the ISM moves above 55, that signals a sustainable recovery ahead. The economy was looking good in 2013 but then fizzled. The central banks keep goosing markets with easy money but the bang for the buck diminishes. Markets and the economy again show joy in 2014 but that faded as well.

Stocks and the economy were prevented from washing out properly in 2009 by former Fed Chairman Bernanke's QE1 and bailout packages for the wealthy bankers. After six years of obscene global Keynesian spending and the Fed and other central banker have nothing to show for it economy-wise, but the wealthy are filthy rich due to the higher stock markets. Stocks are goosed by buyback programs fueled with the Fed's easy money. Companies are not using the Fed's free money to buy equipment or hire workers, instead, they are pumping the stock prices to make the wealthy, that own stocks, richer.

America is separating into a rich and poor society with the gap between the two social classes the greatest in over 40 years. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

The chart is courtesy of Econoday, an excellent site to monitor the economic releases, and annotated by Keystone.

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