Barron’s and Heff, on the Economy

For those of us who like to pass on any little morsel of optimism we can find …

First from Barron’s today, which writes:

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There are signs of stability, if not recovery, in temporary staffing, which some say is a leading indicator for the wider labor market. ‘From a duration point of view, the correction in the temporary labor market is getting very close to where it’s supposed to turn around,’ says Tig Gilliam, CEO of Adecco North America. … the ASA Staffing Index has stabilized for the first two months of the year after falling to a low in the last week of December.

Meanwhile, Jonathan Hefferlin, who knows his stuff and who we’ll see in June, wrote in an email today:

“We should be near the (stock-market) bottom, which typically occurs months before the economy levels. The fact is, everyone is worn out from bad news, and about everyone who was going to sell has, so the path of least resistance may continue to be up … Many indicators are compared with year-ago numbers. Existing house sales down 8.2%, New ones off 48%. As these numbers improve (existing house sales have, due to repos selling briskly) that means the economy is leveling … The average $170k house is getting very close to where the average family ($50k median income) can afford one. The bottom must be near … There has never been a better time to buy a car (inventories are at their peak), and gas is dropping again.”

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2 Comments on “Barron’s and Heff, on the Economy

  1. Thank you for spreading the morsels of “optimism”. The American Spirit is alive and well. There are many of us who refuse to succumb to the negativity of this recession. We have the courage to see the Good in every dark situation and regardless of what things may look like we press forward any how!

    All across this country people are helping and supporting one another. The naysayer will try and drag us down but their time is up and they failed. VICTORY is our only option.

    Heidi Burkley

  2. Oddly shaped tings (like our economy) don’t fall straight down…..There are some pockets of good news out there, but there also remain very bad things afoot- I suggest that folks keep their powder dry for awhile. The banks are still zombies and oil production has fallen quite steeply, which is a bad sign for out-month prices, even with the demand falloff we have seen. Recruiting is going to survive no matter what because it’s a basic activity to any economy whatsoever….

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