For the remaining of this year, some houses are looking at these levels for the S&P500:
- 1,000 - 1,050 (ML)
- 1,100 (CS)
- Earnings seem to be holding up thus far but the suspicion is that companies are retrenching people and cutting cost to produce the best possible profit figures, not a general improvement in the overall economy.
- CaseShiller Home Price Index also rose for the 3rd consecutive month. That is where it all began and problems are not solved yet but we could at least say that housing is bottoming.
- A high unemployment rate and we are not going to see it go away soon if history is of any gauge (see post by my advisor mentor -- http://createwealth8888.blogspot.com/2009/11/how-long-will-it-take-for-job-market-to.html). As the US economy is 70% driven by consumer spending, the high unemployment figure in the US paints a bleak picture of cautious and limited consumer spending at best.
- the consumer confidence is likely going to be an on-going problem due to ongoing contraction in employment and a worsening outlook for job prospects.