6 reasons to be bullish
6. We're seeing positive global developments
In the United States, the housing market may be in a sustainable upturn. Home values are increasing and are cheap relative to replacement costs, and interest rates are exceptionally low for those who can get a loan. Housing starts are moving up from of a very low level. Housing is now a driver of growth rather than a drag on growth. Credit markets also continue to improve with easier lending standards. And the labor market is slowly healing, though it remains historically weak. The number of unemployed per job opening remains high, but is steadily declining and virtually every labor market measure is getting better, though there is a long way to go before the patient is fully healed. And as mentioned, there is a possibility of the economy gaining more traction if corporations loosen their purse strings and begin to invest and hire. Overall, there is no robust growth story, but the recovery is broadening out and the participation of the housing sector is important. Outside the United States, the growth slowdown in the emerging markets may have ended and there are numerous signs that China’s economy is picking up (though not to previous growth levels). Even Europe, currently in recession, could start growing again in the second half of 2013.