Comstock Partners: Normal Recovery? No Way

January 31st, 2011
in econ_news

Econintersect:  Fund managers Constock Capital have written that there are a number of reasons why this is not a normal economic recovery.  They say the facts speak for themselves and feel the Fed continuing with QE2 is justified.  They cite factors in employment, household spending, tight credit and lower home values which make this recovery remarkably weak. Comstock give eight comparisons the the two immediately prceding recessions to make their point.

Follow up:

Comstock's eight reasons:

1)  GDP was up an average of 6.4% from the prior peak at this point in the last two cycles, and only 0.2% now.

2)  New home sales were up 23% then; down 47% now.

3)  Retail sales were up 14% then, 1% now.

4)  Industrial production was up 2.5% then, down 5.6% now.

5)  Non-farm payroll employment was down 0.1% then, down 5.2% now

6)  Personal income was up 11% then, 4% now.

7)  New orders for durable goods were up 6.2% then, down 2.2% now.

8)  Initial weekly unemployment claims were down 8% then, up 22% now.

Comstock Partners are the managers of the Comstock Capital Value Fund.

Source:  Market Commentary, Comstock Partners

Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.



Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day


Asia / Pacific
Middle East / Africa
USA Government

RSS Feeds / Social Media

Combined Econintersect Feed

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution



  Top Economics Site Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2016 Econintersect LLC - all rights reserved