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Weekly Market Commentary
August 30, 2010

 

The Markets

Has corporate America lost its gumption?

Three of the things that have made the United States so great are the determination, fearlessness, and entrepreneurial spirit of our people.  Unfortunately, that seems to be a bit lacking right now with the leaders of some of our country’s largest companies.

For more than two years now, corporate America has been on a belt-tightening, cost-cutting push that has helped contribute to our high unemployment rate.  While that has been bad for employees, it has sparked a significant revival in corporate profits.  For example, according to a New York Times article based on data from the Bureau of Economic Analysis, second quarter corporate profits were within 4% of their pre-recession peak.  And, by another measure, Barron’s magazine pointed out that corporate profits as a percentage of gross domestic product are near 40-year highs.

So, if corporate America is doing so well, why aren’t they hiring and why is the stock market stuck in neutral?

In a word -- uncertainty.

   

Please click here to view the entire Weekly Market Commentary for August 30, 2010.

 

 

 
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