Rising Stocks?

Since January 1st this year, the stock market has trending upward, aside from a minor drop today.

Let’s put this in perspective. There is absolutely no consumer market reason for the stock market to be rising at this time.

In December alone, at least 55,000 people received layoff notices. (Not all in the US but it is an indication of corporate health and productivity, along with consumer spending.) Most of those notices came from Ford Motors, GM and GE.

This is not counting the thousands of layoffs due to the bankruptcy of Sears. Thousands more over the past year by Harley-Davidson moving jobs to Thailand. Thousands more by Carrier moving jobs to Mexico. Thousands more by the bankruptcies of Toys R Us and other companies completely folding or closing locations.

Some reports I have heard say this was the lowest consumer spending season for the holidays for years.

In October or November China stopped buying any oil from the US. China was the number 2 buyer of US oil until that point. Instead they are buying from Russia, Iran and Venezuela. The resulting glut is what caused the sudden drop in US gas prices, meaning lowered profits for US oil companies.

India is opposing US sanctions to buy oil from Iran.

If the US actually does withdraw forces from Syria and Afghanistan (with objections being raised to our presence in Iraq), that will mean decreased military spending, no matter what the authorized budget may be. Budget and actual…