March 09, 2009 marks the day of the decline of the stock market. Jobs were lost, investments were pulled out and recession was in the air. It seemed that people would have more problem on their hands than they can handle. Especially for people whose lives were directly affected by the situation. Give it a few more months and bad credit loans would start to seem friendly.
After 3 years from the unfortunate fall of the stock market, the best times were finally seen at last. The stock market now has six days of straight gain for the S&P, Dow and other averages. Since the start of 2013, the Dow is nearly up by 10 percent. And it is very good news that the stock averages at present have doubled in value since March 9, 2009.
How Long Will it Last?
This standing is way better than expected. But the question is, would this good fortune continue and until when? Statistics show that even though the numbers show indeed a very promising rise, it may not be enough to keep the stock market towards a positive trail. In the upcoming weeks and months, the market could be facing a tow on their upward trend.
A jobs report sparked yet another stock rally last Friday. It stated that 236,000 jobs were created which resulted in a drop in the unemployment rate. The number of people who are looking for a job also dropped by 130,000 just last month. Many believe that these numbers might be masking an even deeper problem.
On the Other Side of the World
In terms of the economic growth in China, it could be said that they are indeed having an impressive year. As proof of their growth, a Chinese industry group reported that auto sales have risen to 19.5 percent just in the span of two months. They also said that the industrial production went up by 10 percent within the first months of this year. This is quite a big thing if you compare it to the standing last year. Even retail sales went up by 12 percent.
Analysts observed that a lot of US companies are interested in putting their profits overseas simply because the taxes are lower. According to the Wall Street Journal, this is the result of the tax rules which give incentives to companies wherein they could maximize the earnings and holdings of companies with overseas subsidiaries.