The stock market has been on a roller coaster and there's a good chance it's not getting off anytime soon. Good news on the jobs front along with some better than expected earnings sent the market up Thursday, but that follows a down day that struggled with uncertainty. Investors are looking for a reason to buy, but reality keeps biting them in the butt. And that reality is true unemployment (combining the jobless numbers with workers on reduced hours or otherwise working for much less than before) is staggering. A vast majority of business economists recently predicted it will be at least two and, quite likely more, years before the unemployment situation is resolved. That means in the short run it is unlikely that consumer spending will return with any strength. Without increased consumer spending, business spending will not grow enough to create the jobs we need to ease the unemployment crisis. Remember, we not only have to replace lost jobs but must also create jobs for young people entering the work force every year. This is why the stock market charts are likely to look more like the Swiss Alps than an airliner taking off.
Follow me on Twitter Stock Market on Rocky Course originally appeared on About.com Stocks on Thursday, November 5th, 2009 at 23:49:08. Permalink | Comment | Email this | 
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