If you want to see a very cool graphic on consumer spending, which is the core of U.S. economic growth, you should go to WWW.WEALTHSTRATGROUP.COM. Once there, drop down to the tab for WSG Investment Index. The first graphic is a five year "glance" of consumer spending versus the S&P 500.
The first graph is interesting, but use your mouse and scroll down to the second graphic. This clearly shows the "Black Friday" consumer shopping spike and the significant drop off since. As I have written before, it is VERY important that consumer spending stops dropping, levels off and best case starts to increase as holiday shopping continues.
What's the big deal? Simply this: If this chart drops or remains flat Gross Domestic Product (GDP) for the quarter will likely be the same. Since jobs are driven by economic growth, a flat or decreasing GDP would suggest the same for jobs. Without the growth of both GDP and jobs we will have yet another round of quantitative easing which further erodes the purchasing power of our dollars, i.e. your standard of living drops!
This chart updates about every two days. If you watch this second graph you will find it is like having the economic news three or four months in advance..... at your finger tips today! Pretty cool!! It is a gift use it wisely!
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