U.S. Stocks to Fall as Chronic Unemployment Reaches Record

[marmar]

U.S. Stocks Set to Fall on Deepening Unemployment: Chart of Day
By Hideki Sagiike and Masaki Kondo


April 27 (Bloomberg) -- The Standard & Poor’s 500 Index is poised to fall as chronic unemployment rises to a record among jobless Americans, according to Mitsubishi UFJ Securities Co. the brokerage unit of Japan’s biggest bank by market value.

The CHART OF THE DAY shows the S&P 500 and ratio of Americans jobless for more than 27 weeks relative to the total number of unemployed. The equities gauge has jumped 80 percent from a more than 12-year low on March 9, 2009, even as long-term joblessness surged to 44.1 percent in March, almost double the level a year earlier and highest since records began in 1948. The lower panel tracks overall unemployment, which has declined 0.4 percentage point since reaching a 26-year peak in October.

“The government’s stimulus measures have driven up stock prices” and helped disguise the unemployment problem, said Seiki Orimi, a senior investment strategist at Tokyo-based Mitsubishi UFJ. “Stocks will fall, at some point. For now, people in the market are tricking themselves” into believing in a U.S. jobs recovery.

Consumer spending accounted for about 70 percent of the world’s largest economy in the fourth quarter, when gross domestic product expanded at a 5.6 percent annual rate, the fastest pace in more than six years. Output in the three months to March probably expanded 3 percent, based on the median forecast of 60 economists surveyed by Bloomberg. The S&P 500 may fall as much as 5 percent in an “overdue” decline, according to a technical analysis this month by Thomas Schroeder, managing director at Chart Partners Group Ltd. .........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601109&sid=aisk6AgvjUqI&pos=15

[marmar]

1. "Reovery is a Chimera" Kick.....

:kick:

[theophilus]

2. U.S. Stocks to Fall as Wall Street Gets Pwned and Throwed in the Klink! n/t

[CoffeeCat]

3. I've never been so befuddled by the economy...

I don't know whether to shit or go sailing.

Hundreds of experts can make the argument that the economy is improving
by leaps and bounds and that we are climbing out of a recession that won't
rebound.

Then, you have hundreds of experts who will tell you that it's all a house
of cards, built on bubbles that will implode someday and we're all screwed.

I only have a minor in economics...so I guess I'm just not intelligent enough
to figure out what is going on with our economy and where it is headed--but it
sure would be nice to know.