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The recovery since late 2007 has been healthy in every respect: equity valuations are up, savings are up, real estate values are up, and liabilities are down. Households have deleveraged and built up their savings, and the recovering economy has boosted equities and, more recently, housing prices.
According to Radar Logic, housing prices rose over 13% last year.
The recovery may have been slow and agonizing for many, but it is for real. The U.S. economy has gone through tremendous adjustments that have enabled it to resume a normal and healthy path of growth.
6 comments:
Yep. New High. But not so sure about 'real', though. Nominal, yes. But am not complaining. 92 percent long, and have been so since before the big 2009 bottom. Rode down, and stayed away from 2nd story windows.
I think there is a little typo: "The recovering economy has boosted equities". Mr. Bernanke just phoned in and said it should read "The Fed has boosted equities". He also said you forgot to account for the fact that Federal government debt went from $8.6 trillion at the end of 2006 to 16 trillion. Other than that, your analysis is really spot-on!
Real per capita household net worth is down 2.3% since the 2000Q1 peak and 19.3% since the 2007Q1 peak.
It ain't pretty, but we are marching up the field, four-yard gains, and mediocre ground game.
Sgt Red: I didn't even go to the upper floors....
Scott, interested in hearing your current thoughts about AAPL. Thanks...
Benjamin, lots of room for this market to move to the upside, and it will occur over several years. Last time the market didnt falter until one year after the Fed STOPPED raising rates.
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