Friday, March 20, 2009
This morning, we finally made it out of winter and into spring. I think that I've seen enough indicators to be cautiously optimistic that the economic trends are springing upward too. The stock market is a leading indicator, and it has started to look mildly but consistently positive. I have been to car dealers where I have seen more people at least looking. I have seen a few "Sold" signs on houses and more realtors bringing potential customers for house tours. There are even some repaired potholes on my neighborhood streets (Some, but nowhere near all of the holes are repaired.). I know a lot of people who are taking major spring break vacations with their kids, and companies are again sending people on business travel. Smaller local banks are lending, and companies are extending credit terms. The big remaining obstacles are the major banks and insurance companies getting liquid again. The stockbrokers should be doing well because they make as much from a trade in a downward market as they do from a trade during a market gain. So, let the sun shine in and warm things up gradually.