Yes, it really is this simply sometimes. Expanding housing and auto sales mean expanding jobs and expanding economy.
“Davidson” submits:
May 2013 Auto & Light Weight Truck sales were released +today. Various estimates range from 15.1mil to 15.5mil SAAR(Seasonally Adjusted Annual Sales). In the chart below I used the 15.2mil SAAR value.
There is no slowing of the light weight vehicle sales trend which has a good history of forecasting the future employment trend and the direction/strength of our economy. Last week’s Monthly Supply of Homes for Sale is one of a number of economic data series which indicate that economic expansion continues.
There is a strong correlation between economic expansion and higher equity prices ($SPY).
For equity investors this means that higher prices are likely.*
