Market Breaks 15,000 Before Pulling Back

Bullish on Wall Street

Despite a slight pullback after breaking through 15,000 for the first time, the Dow still closed at an all time high finishing the day at 14,974 up 142.  The rally was driven by a better than expected jobless report.  According to the Labor Department, the economy added 165,00 jobs, 15,000 more than expected dropping the unemployment rate to 7.5%.  Most sectors in the economy, including residential construction, retail and car manufacturing did well.  The one drag on the economy was government sector jobs.  But depending on how one looks at it, that’s not a bad thing.  Since the government doesn’t produce wealth, it’s always a drain on the economy.  Shrinking government payrolls may hurt short-term but will be just what the country needs long-term. Pensions and all of the other lifelong perks drain the economy because the money needed to pay these pensions and benefits come from taxpayers.  Shifting money doesn’t help anyone except those people willing to live off others.  Sequestration was largely to blame for the job loss.  In terms of worker groups, the Labor Department report said, “the unemployment rate for adult women(6.7 percent) declined in April, while the rates for adult men (7.1percent), teenagers (24.1 percent), whites (6.7 percent), blacks (13.2 percent), and Hispanics (9.0 percent) showed little or no change.”  While the record-breaking territory is exciting and great for those who took a bath after the crash in 2008, many economists expect the bottom to fall out. There are some economic numbers that point in that direction, however, business fundamentals are far better today than they were five years ago.  Yes the economy is still fragile but when there is a correction, it shouldn’t be an implosion.  Many economists are simply negative and spend their time there, so when there finally is a correction they can say, “you see, I predicted it”.  But the problem with that logic is, on the ascent to 15,000 many people not only gained back everything they lost, but are now wealthier than they were.  If they had listened to the pessimist economists and everyone who follows the market knows who they are, they would have not been part of this meteoric, historic and record-breaking climb.

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