We are starting to see stock buyback action comparable to the last time we were late in the business cycle.
Quote of the Day
Word of the Day
An expanding economy is characterized by low unemployment, high productivity, and high consumer spending. When there is a decline in productivity, business revenues start to decline. Companies, consequently, reduce their workforces to cut costs. This results in rising unemployment and lower consumer confidence and spending, which are all hallmarks of a recession.
As the recession weakens, incremental increases in productivity and revenues lead to an economic recovery. The unemployment rate is gradually reduced as companies begin hiring again. A decreasing unemployment rate leads to an increase in consumer confidence and spending, and the economy begins expanding again.
One economic indicator that shows the business cycle at work is the unemployment rate, seen in today’s chart of the day.
Chart of the Day
Unemployment is at an historically low level of only 3.9%:
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