Nasdaq crossed 5000 today

[spdrun]

You have stable companies that have high valuations, but you also have things like Tesla trading at 166 times earnings.

Good luck mailing checks with the GOP in control of both houses!!!

[fun4vnay2]

The biggest problem I see from where I stand and from my observation of last few years: Flight of high paying jobs.

I have been observing the outsourcing of jobs to low cost countries. Wherever I worked in the last 10 years, I see the jobs going away to low cost countries. These are high paying jobs which pays upward of 100K/year

My friends in the hi tech center are working more and more hours for lesser pay to justify their salaries. Initially, it used to be the bottom of the barrel jobs shifted out but not people from low cost centers are getting the best projects.

I hear all the job reports and the rosy picture but I don’t see that happening.
In SD, the hospitality, retail and construction sector jobs are not well paying all, They don’t pay north of 100K.

I am not an expert on anything related to economy but I could see the housing bust coming in 2007 and was lucky enough to buy a SFR for me at the bottom. Although a lot of people told me to buy in SD in 2007 because SD home prices never go down and this time is different theory.

From where I stand and with my limited knowledge/experience, I see the middle class evaporating from this country faster n faster now..

[FlyerInHi]

[quote=rockingtime]
From where I stand and with my limited knowledge/experience, I see the middle class evaporating from this country faster n faster now..[/quote]

You should read Thomas Pikety’s book. He says that the middle class is a 20th century aberration. The natural state of capitalism is income inequality.

[spdrun]

Except that we don’t have pure capitalism, nor is it desirable.

[fun4vnay2]

Looking at the increasing wealth gap, it looks like we are moving towards pure Capitalism…

[CA renter]

[quote=rockingtime]The biggest problem I see from where I stand and from my observation of last few years: Flight of high paying jobs.

I have been observing the outsourcing of jobs to low cost countries. Wherever I worked in the last 10 years, I see the jobs going away to low cost countries. These are high paying jobs which pays upward of 100K/year

My friends in the hi tech center are working more and more hours for lesser pay to justify their salaries. Initially, it used to be the bottom of the barrel jobs shifted out but not people from low cost centers are getting the best projects.

I hear all the job reports and the rosy picture but I don’t see that happening.
In SD, the hospitality, retail and construction sector jobs are not well paying all, They don’t pay north of 100K.

I am not an expert on anything related to economy but I could see the housing bust coming in 2007 and was lucky enough to buy a SFR for me at the bottom. Although a lot of people told me to buy in SD in 2007 because SD home prices never go down and this time is different theory.

From where I stand and with my limited knowledge/experience, I see the middle class evaporating from this country faster n faster now..[/quote]

Totally agree with this.

And yes, capitalism eventually destroys itself. We are getting to the point where it will be capital/traders vs. capital/traders; the big fish swallow the other big (but smaller than they are) fish. The working people are becoming weaker and weaker, and have less and less. There is not much blood left to get from them at this point, so the capitalists will start going after each other.

[fun4vnay2]

Another spectacular job report in wall street which created euphemism everywhere.

But the crux is: Most of the jobs created are low paying jobs while high paying solid middle class jobs are flying out of usa.

I think within few decades, there would be 2 classes in usa:
1) People who are very very rich
2) People who are serving these very very rich like gardener, street sweeper…

[spdrun]

“created euphemism”: ahaha!

I don’t see it creating euphoria either — markets are down as we speak. It’s also less spectacular considering that January was revised down by 18,000.

[The-Shoveler]

In the mean time construction and trades are having a very difficult time finding young workers willing to commit to a apprenticeship program for good paying Jobs.

(seems Millennials are not interested in trades work)

http://hotair.com/archives/2011/11/28/when-good-paying-jobs-go-unfilled/

Mean while demand for Software engineers is expected keep growing.

http://www.boston.com/jobs/2013/12/23/the-year-the-fastest-growing-jobs/GGDo2PVgihmpsurdiPGUhO/story.html#slide-7

just don’t go out and get a degree in fine arts and expect booming job opportunities.

[spdrun]

I’m not sure that demand for the KIND of software engineers that are being trained will keep growing forever. Market for fart apps may become saturated. It actually might be more secure to learn software engineering where the software controls actual things. Power grids, aircraft, and the like.

Good point about trades work. I’ve often wondered whether I’d have been better off apprenticing as an electrician.

[fun4vnay2]

Thanks for correcting me, I was looking for ‘euphoria’ 🙂

Markets are down not because of job report but the euphemism due to job report is all around us

Per my understanding, the jobs are almost all low paying..

[Leorocky]

Where does you understanding come from? Because the actual data says differently

From the WSJ:

Hiring was strong across most industries. The leisure and hospitality sector added 66,000 jobs last month. Professional and business services added 51,000 jobs, even while a component of that category, temporary help services, declined.

Health care and social assistance added 32,800 jobs, retailers added 32,000 positions to payrolls and construction jobs increased by 29,000. The public sector added 7,000 jobs.

[FlyerInHi]

Remember that our corporations are global companies. The national economy plays an important role in valuation, but long term, worldwide growth is what matters.

This year, our economy will be adding 3 million jobs. That’s a lot of jobs.

[spdrun]

We’ll see — two months’ figures don’t make a trend.

[FlyerInHi]

As much as you keep wishing spd, we will not see a recession until well past 2016, I would say 2018 at the earliest.

The term “recession” sounds bad but it’s just 2 quarters of negative growth. Who cares, if after a recession, we just power along to even more growth?

People make it sound like a recession is a cataclysmic event — an undoing of all gains we’ve made for decades.

[Author]

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