On October 2007, the Dow Jones Industrial Average reached 14,100. The oil prices reached $147/Barrel.
From then the market went down extensively with the collapse of the financials and the Real Estate subprime. Job Creation was Negative of 800 k per month. The DOW reached a low of 6500, and oil around $70/ Barrel, .
This week the DOW reached 14,300. The oil reached $90/B and the financials are improving dramatically. The job creation reached positive 240K.
This year the GDP is estimated to reach 3% up from 2% . Real Estate is improving and the auto Industry is doing fantastic. Financials are improving faster since the housing market is improving.
The legislators, in my humble opinion, have done brilliantly.
The "
Fiscal Cliff" Bush tax cut ended up with 80 Billion Dollars/Y revenue. The "
Sequester" ended up with cuts of 85 Billion Dollars a year. These cuts and the improved revenue, will have the economy take off. In addition, this will reduce USA debt tremendously.
This is much similar to the time of
Bill Clinton with a twist.
USA will produce more oil than Saudi Arabia very soon and the trade imbalance is shrinking. New car efficient scale and the use of natural gas for transportation, a new economy emerging which we didn't have before.
Combined with OBAMA Care, end of the war in Iraq and Afghanistan, a well deserved Nobel Price.
It is a brighter outlook for the economy this coming few years. Invest accordingly.
nazeeh
