GDP is likely to continue to grow throughout 2013 and 2014, but at a slower than earlier expected. Unemployment to decline gradually, but it will still remain uncomfortably higher. Fed says it won’t hesitate to provide additional support to the economy if required. They will be closely monitoring inflation and unemployment situation.

Over the past one year global stock markets failed on all attempts to rally as consistent negative news flow continued to trigger selloffs in panic. Fears still loom that debt crisis in Europe will put brakes on global recovery, and this could mean that we will see a volatile 2012 for stock markets globally. I would say that this year won’t be any different than 2011 as similar concerns will continue to rock the sentiment. [...]

As discussed in the earlier post, the current situations prevailing in Europe are more likely to worsen in 2012 than they have the chance to head for the better. However, I know taking directional calls on economies of such scales isn’t a wise thing to do as almost certainly things always pan out in a different order. So, rather than betting on a particular trend, in the last post we discussed about the prevailing situation and key [...]

As we close the year on a flat note for the US stocks, investors are rightly worried about the far reaching impact of the European crisis as it threatens to put breaks on the ongoing recovery in the US. At this point in time, when most investors are busy assessing and rebalancing their investment portfolios, the precarious state of European Crisis is mounting fears that the worst is still to be seen in 2012. Let’s [...]

If you go by the numbers, there is every reason to believe that the Job Market is gaining traction as the recent statistics released by the labor department indicate a drop from that sticky 9 percent zone to 8.6 percent. Well, this monthly drop in unemployment rate was on the back of 120,000 jobs created in the month of November. This drop in headline unemployment number is definitely something to cheer about, but the real [...]

The US economy is recovering at a slow pace and that should sound like a relief to most of us. But, it’s the nature of this recovery process and the global uncertainties which do not allow us to be complacent at this point in time. Many question the role of Federal Reserve in bringing life back to US economy, till sometime back even I was in the same club. The fact of the matter is [...]