Current Investment Outlook

The fear of a depression is now well behind us. The U.S. economy is in recovery mode; the only question is how strong it will be. With earnings recovering nicely, the focus now shifts to the removal of global stimulus.

• All signs are pointing to an end to the economic contraction and a move to economic expansion.
• More than half the approved stimulus package is to be spent in 2010.
• Cost reductions, improved demand, and inventory rebuilds continue to fuel impressive earnings growth.
• Job losses are slowing. Unemployment may have peaked.
• Consumer spending always leads us out of recessions. This time should be no different.
• Signs of a stabilization in housing are present.

Economic recoveries usually last years. History suggests this bull has more to run.

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