Some of the dynamics undermining U.S. workers – cheap financing for big, global companies that do much of their hiring overseas; rising productivity as employers stretch resources and trim fat; and a surplus of both workers and production capacity – spell good news, at least at the moment, for investors.
“We have bad news for an awful lot of people, but it’s a Goldilocks economy for stocks,” said Keith Springer, of Springer Financial Advisors in Sacramento CA. “The Fed is trying to create a bubble of artificial demand to create the wealth effect. It doesn’t do much for jobs, but for now it’s pretty good at driving stock prices.”
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