Thursday, May 11, 2006

The WSJ Opens Its Eyes

Looks like the Wall Street Journal has seen the light on the U.S economic boom, based upon their front-page spread this morning. (Behind Surging Stock Market: Old-Fashioned Economic Boom.)

The Greatest Story Never Told is at last, garnering the attention it deserves.

Glad to have them on board, however belatedly...

“After Hurricane Katrina hobbled economic growth late last year and as oil prices soared, many investors thought the economy, corporate profits and the stock market would be running on empty by now.

Instead, an economic rebound has sent corporate profits to an 11th consecutive quarter of double-digit gains, the longest streak since at least the 1950s. Surprisingly strong growth in the economy and corporate profits has shaken stocks out of their doldrums. The Dow Jones Industrial Average is now within sight of its record close.

Unlike the great 1990s bull market, which was sustained by a wave of new technology, this one has the feel of an old-fashioned economic boom, the type investors saw in the 1950s and 1960s… The situation resembles the Goldilocks economy of the 1990s -- not too hot, not too cold -- with inflation moderate and economic growth downright strong. The annual economic-growth rate hit 4.8% in the first quarter, the fastest pace since 2003...”