TUESDAY JULY 28, 2009

Economic recovery?

The economy appears to be on the mend. In my mind, the market seems to have moved beyond the recession. The debate is now when and how strong the recovery will be. 

 

 

The last three housing reports, (existing home sales, new home sales, and the Case-Shiller index) have shown positive improvements.  Indeed, the Case-Shiller index showed that home prices increased month over month for the first time in 3 years!

 

The economy won’t skyrocket anytime soon. But the housing news provides evidence of stabilization in the housing market, suggesting that construction activity will return sooner than expected. And the auto industry summer factory shut downs are coming to an end. Neither housing nor autos will boom. But, even modest activity in these areas will help push our economy out of recession and into growth.

 

The new debate will be how strong the growth will be.

POSTED AT 1899-12-30 15:10:00.0

KEN ENTENMANN, CFA
SENIOR VICE PRESIDENT AND
THE DIRECTOR OF INVESTMENT MANAGEMENT SERVICES

Ken is a Senior Vice President and the Director of the Trust and Investment Services at Alliance Bank, N.A. He has 23 years of investment experience and oversees the management of assets totaling $1 billion. He holds a B.S. in Applied Economics and Business Management from Cornell University and an M.B.A. from the William E. Simon Graduate School of Business Administration at the University of Rochester. He has also earned his Chartered Financial Analyst designation. He is a member of the Executive Committee of the Trust Division of the New York Banker's Association. He is also a director of the Central New York Community Foundation.

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The opinions expressed here do not represent the views of Alliance Financial Corporation and Alliance Bank, N.A. This communication is not an offer or solicitation for the purchase or sale of any security, is for general informational purposes only and does not provide personalized investment advice. When making personal investment decisions you should consult your investment adviser or rely on your own research. Copyright 2008.