Live Big Digest – May 7, 2010
It seems appropriate that Mother’s Day is upon us as stock market gyrations are making everyone cry out for Mommy. Of course, we know that the market progresses in fits and starts, with any extended rise likely to be followed by a setback. This one was probably overdue, though clearly exacerbated by what is variously being described as “trader-error” or “computer-glitch,” which briefly triggered a 1,000 point drop in the Dow yesterday. For a moment, in fact, shares of Accenture, which had been trading at close to $40 a share, dropped to a penny. I’d love to have been on the buying side of that trade!
If you’re worried that renewed volatility in the markets is signaling economic trouble, however, consider the following:
The productivity of American workers continues to soar.
Employers added 290,000 jobs in April, greatly exceeding even the most optimistic projections.
The jobless rate rose from 9.7% to 9.9%, but only because of a surge of new job-seekers, usually a positive sign during a recovery.
And all those dollars leaving the stock market this week went into Treasury bonds, driving yields down along with the rates on home mortgages.
So, be of good cheer this Mother’s Day weekend, for this too shall pass.
Have a great weekend!
The Yeske Buie Team