Elephant In the Living Room
With all of the recent good economic news about the labor market, retail sales, consumer confidence and manufacturing, let’s not overlook one of the most obvious pieces of good news – the stock market. The S&P 500 closed on Thursday at 1374.09, its highest level since June 5, 2008. The index has risen by 9.2 percent this year and by 25.0 percent since the recent low on October 3, 2011. The VIX, which measures market volatility, has declined in recent weeks to its lowest levels since last summer, a sign that investor fears of a near-term recession and financial contagion from Europe have receded. Rising stock prices have several positive knock-on effects for the economy, boosting consumer and business confidence and smoothing the way for companies to secure financing through public offerings, not to mention helping us all sleep better at night.
Have a great weekend.
SVP, Chief Economist
Grubb & Ellis
To unsubscribe from this email select "Reply" and type "Unsubscribe me" in the subject field.
© 2012 Grubb & Ellis, all rights reserved.