With silver outperforming gold recently, could some believe the recession is over?
*Financial Times, by Krishna Guha & Sarah O’Connor, September 15, 2009:
"Recession likely over in US says Bernanke
The US recession 'is very likely over,' Ben Bernanke, Federal Reserve
chairman, said on Tuesday as data showed retail sales rose last month
at the fastest rate in more than three years.
Sales rose 2.7 per cent, with the expected boost from the popular 'cash
for clunkers' car rebate programme accompanied by a surprise pick-up in
other spending.
This raised hopes that US consumers might be re-emerging from the
rubble of the housing market collapse, the roller-coaster ride in
equities markets and rising unemployment.
'This is a consumer that is in a lasting full recovery mode,' said
Chris Rupkey, at the Bank of Tokyo/Mitsubishi UFJ. 'The Fed is going to
need to stop talking about its exit strategy and start implementing it
if today’s data keeps up.'
Others were more cautious, pointing out that August was the
back-to-school month. 'I’d like to see if this is just a one-month
bounce or an actual trend,' said Adam York, at Wells Fargo.
Many economists believe that consumer spending will be constrained for
months by households’ limited access to credit and their desire to
reduce their debts.
However, after a long period of near-stagnant spending, there may be
pent-up demand for some goods."
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.
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