US Unemployment Claimants

Those following the dire economic situation around the globe seem to have recently disconnected them selves from what every Claimant (Jobseeker) represents. Each Month for the seventh straight time, the United States Financial powers that be announce that 600,000+ more people are now looking for a job over the last month, the worst performance since 1982.

The number of people collecting U.S. jobless benefits swelled to a record 5.47 million, indicating employees, once fired, aren't finding other work as companies cut costs.

Yet the stock market shrugs and doesn’t recognise that each digit in these figures is a real person! There are over 5million in the USA claiming benefits and yet the US Stock Market thinks prices are low and now is a good opportunity to buy! Over half the companies listed on the DOW Jones 30 Index and the S&P 500 are overvalued – why would anyone be buying into the market at these levels?

The Financial institutions globally with their excessive risk taking have screwed the global economy over and yet many of the same flock are deciding the US stock market should be bought once again. In my opinion the market hasn’t seen the lows it deserves. Currently the S&P is at 800 and the DOW is at 7555 – these markets have rallied 20% off their recent lows in just fewer than 2 weeks – a phenomenal bear market – something which hasn’t been seen since the 1930’s. However, that is exactly what it is – a bear market rally – get ready for the market to factor in the large unemployment numbers and to resume the sell off until levels of fair value are reached.