The next paragraph is a summary published by Vanguard. It gives a concise summary of economic news and an update on some investments. The rest of the information is my view of the weekly events.
The week's economic news suggests increasingly blue skies ahead for the U.S. economy, though not without some remaining clouds. Leading indicators and home sales improved, but durable-goods orders fell. Skies also turned friendlier in Europe, as air travel resumed after being halted by volcanic ash—but not before taking a toll on shipments of perishable items. Meanwhile, Greece's government formally requested international financial support to help forestall possible loan defaults. For the week ended April 23, the S&P 500 Index rose 2.1% to 1,217 (for a year-to-date total return of about 9.8%). The yield of the 10-year U.S. Treasury rose 5 basis points to 3.84% (for a year-to-date decrease of 1 basis point).
The index of economic leading indicators is increasing at a faster than normal rate suggesting that the economy should continue on the path from recovery to growth. Growth in the residential home sales is a very key next step in the recovery process as it provides another foundation for future economic activity. The residential housing market is a huge segment of our economy.
A recovery in the commercial real estate market is the next thing that we need to complete the recovery as this will indicate future business growth. Job growth is the indicator that most people are following. This will grow after business grows and commercial real estate growth is a good indicator to follow. The trail that leads to growth in jobs goes through growth in residential home sales (starting now) followed by growth in commercial real estate (coming soon).
Enjoy the good things of life, Do not follow the doom and gloom in the news.
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