Dec 7, 2009

Vanguard weekly update (12/04/09)

According to the economic news in the Vanguard Weekly update, November marked an unexpected break from the seemingly endless reports about massive job losses. Unemployment declined to 10.0%, and the steady--and large--declines in payroll numbers nearly came to a halt, at least for the month. It's not yet clear how sustainable this change of direction will be. As we have mentioned in several other posts, it is going to take a lot of innovation and demand (not just here in the US, but also globally) to help get the economy to chug along at a good pace.

Other reports indicate that the economy is growing, but well-regarded gauges of business activity show manufacturing growth slowing and service-sector growth reversing.

Another number to always keep an eye on is the value of home sales across regions. This we believe is more important than the number of homes sold or number of mortgages taken out, as this is a REAL indication of demand, rather than of (speculative in most cases) investors seeking a good deal in a down market. Here's hoping for the best in the weeks ahead - that the holidays bring even better cheer to everyone.

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