Dow Jones Industrial Average And Economic Recovery On The Rise; Analysts Say It Makes No Sense

The Dow Jones Industrial Average continues to see positive numbers and economic recovery is said to be going in the right direction, but not without problems. The slow recovery of the economy is causing many to be cautious, like employers who refuse to hire, and areas like real estate still face troubles as homes are still continually facing foreclosure.

Analysts say that the economy is out of the recession on paper but there isn’t vast amount of improvement in the differing economic markets, yet the Dow Jones Industrial Average seems to speak contrary to these dreary views of the economy.

Many are wondering if the gains in the Dow Jones Industrial Average are a sign of true economic improvement or if the rise in the market is just a fluke. People want to know if investors are getting their confidence back or if they are just taking a chance that things are going up. In a injured economy when stock prices are down people have a better chance to buy stocks whose prices have dropped and profit as things improve. However, is the idea that the economy has nowhere to go but up the true feeling on Wall Street?

The Dow Jones Industrial Average isn’t a perfect indicator of the financial state of our economy and many cite the evidence being that numbers on the Dow are up while the economy is stagnant.

Despite ideas that the economic recovery doesn’t compliment the rise in the Dow Jones Industrial Average many feel that all the negative reports about the economy are simply overcautious outlooks from people who don’t wish to chance a positive report in the face of slow economic recovery.

Unemployment and foreclosures continue but are these factors not still fallout from the recession? After a fire burns out there is still smoke, so are these lagging areas not simply the smoldering remains of an economic wildfire that has been snuffed out? Perhaps, this spike in the Dow Jones Industrial Average is a coincidence and investors are in for a shock.

Both sides can make a case for the economic improvement versus the Dow Jones Industrial Average numbers but the question still remains: why is the stock market alive and prospering in the face of a lackluster economy?

The nation as a whole wants improvement but there are many who aren’t seeing it, yet there is something causing the Dow Jones to climb again and if it continues as the economy improves then can it really be that this economic indicator can exist and thrive apart from a healthy economy or do we have to conclude that the economy is truly up and running again?

Discount retailers and rent to own stores like Aarons have greatly benefitted from the economic recovery.  Some families have seen their income increase but not enough to start getting into the middle to upper class.  This is why stores like LKQ, Aarons, Rent a Center and Dollar Tree have all seen their stock price increase in the last several years.