Mitch Zacks of zacksinvestmentmanagement says one of the major factors driving the stock market as it hits new highs is the strength of the job market, which has witnessed the strongest period of job increases in over five years, and a concurrent drop in unemployment claims to a five-year low. Zacks attributes the employment numbers to the Federal Reserve’s quantitative easing—essentially printing money, and predicts a Gross Domestic Product (GDP) growth of three percent this year, an upgrade from the 1.3 to 1.9 percent originally projected before the sequestration cuts. He says, “A fairly solid, full-steam ahead economy appears to be here.” MHProNews understands that jobs are a major factor in driving the overall housing economy. Zacks does caution that the Fed may ease the easing too soon, which could be harmful.
(Image credit: Fotosearch–Businessman with crystal ball)