Few weeks back , US reported a reversal in the jobless rate from 10.2% to 10% which was sounding like a reversal in the sluggish state of economy. But since then the data on housing and jobless rates have been really bad. The home resale has plunged last month to a ten month low, while new home sales is also showing negative growth.
On the other hand, there has been a rise in jobless benefits enrollment which has been a shocker for most of the analysts. Now the housing mortgage rates are slowly moving to 5% level, which is also going to pull down further recovery in the housing sector. With no clear indications of overall economic recovery, it is only a question of time before people start cutting down on their spendings. That in turn can pull down any future economic growth badly.
So be careful and en-cash all your risky investments in stocks and bonds and commodities, say experts.