We have all seen things from an economics standpoint that we never thought would have happened in our lifetime.
The Dow went from over 14,000 to under 6500 in a matter of 18 months, and talks of another Great Depression were heard on almost every US news channel.
Things though did not get into depression territory, and they look now to be stabalizing at least a bit.
So, when will the rebound occur in the general economy? Here are three things to look for that will determine that an economic rebound is taking shape.
#1 Temporary Work Force Gains Before the unemployment rate starts decreasing significantly, there will be a pick up of temporary jobs available.
This is because as business's start earning more, or start sensing that they will be earning more money, they want to expand.
Before hiring permanent employees, they usually hire temporary ones to fill the spots until it is confirmed that a turn around has begun.
Look for a rise in temporary workforce numbers for 3-4 months in a row before getting too excited #2 Reduction in the Housing Supply The housing market got us into the mess we are in, and will need to rebound in order for us to get out of it completely.
The Index is measured by the total number of months worth of homes that are on the market given the sales rates.
As mortgages become more available, and people become more optimistic they will begin either buying homes, or taking their homes off the market.
Once there are about 6 or 7 months worth of homes on the market, we may be in pretty good shape.
#3 Corporation Mergers and Acquisition When large corporations begin to both merge and acquire other companies within their sector, we know that the managers of these companies feel the stock prices are way undervalued and that the hope for a recovery is ever so closer.
We are beginning to see some acquisitions, so maybe we are not as far away from a recovery as some think.
I have no doubt that the American economy will recover.
It's just when, and how fast.
The Dow went from over 14,000 to under 6500 in a matter of 18 months, and talks of another Great Depression were heard on almost every US news channel.
Things though did not get into depression territory, and they look now to be stabalizing at least a bit.
So, when will the rebound occur in the general economy? Here are three things to look for that will determine that an economic rebound is taking shape.
#1 Temporary Work Force Gains Before the unemployment rate starts decreasing significantly, there will be a pick up of temporary jobs available.
This is because as business's start earning more, or start sensing that they will be earning more money, they want to expand.
Before hiring permanent employees, they usually hire temporary ones to fill the spots until it is confirmed that a turn around has begun.
Look for a rise in temporary workforce numbers for 3-4 months in a row before getting too excited #2 Reduction in the Housing Supply The housing market got us into the mess we are in, and will need to rebound in order for us to get out of it completely.
The Index is measured by the total number of months worth of homes that are on the market given the sales rates.
As mortgages become more available, and people become more optimistic they will begin either buying homes, or taking their homes off the market.
Once there are about 6 or 7 months worth of homes on the market, we may be in pretty good shape.
#3 Corporation Mergers and Acquisition When large corporations begin to both merge and acquire other companies within their sector, we know that the managers of these companies feel the stock prices are way undervalued and that the hope for a recovery is ever so closer.
We are beginning to see some acquisitions, so maybe we are not as far away from a recovery as some think.
I have no doubt that the American economy will recover.
It's just when, and how fast.
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