Warning Signs of a Rally to Nowhere
-- June 5, 2003

You can practically see the bulls sweating on Wall Street, as one piece of bad news follows another. Just look...

• Jobless claims are at their highest level in over a month, and unemployment is rising. In fact, Alan Greenspan calls the US job market "exceptionally weak."
• A worsening job market should kill whatever buying power already-strapped consumers have.
• Economists are expecting weak economic growth -- certainly not enough to create new jobs.
• In other news, April US factory orders had their biggest plunge in nearly a year and half. Orders for machinery, electronics and more are all falling.

This isn't the news you hear in a recovery. This is the news you hear when the economy is about to take another dip down into recession. Meanwhile, stocks are running up in anticipation of an imminent recovery. That's a huge disconnect. And once the current market mania fades, that disconnect will be corrected in a hurry.

related article: Survey: Economy Faces More Weak Growth