Thursday, February 24, 2011
Unemployment claims continue to decline in a fairly impressive fashion. I take this as a sign that businesses have worked very hard to cut costs and trim their labor force; most of the layoffs that were required by the economy's new reality (a housing and financial market bust) have already happened. This sets the stage for a resumption of healthy growth, which should become apparent in the months to come. Below is the same chart I posted yesterday, updated with today's numbers. The message is the same: improving economic fundamentals provide strong support for equity prices.
Posted by Scott Grannis at 8:40 AM