NAHB reports HMI at 55- Chart 1: Housing Market Index(HMI) and ASA (Temp) Staffing hits 101- Chart 2: ASA (Temp) Staffing Index.. Even without having the normal economic measures due to the recent government shutdown, reliable indicators from other sources continue to indicate that economic expansion is proceeding in spite of the political bickering which have filled the headlines recently. NAHB Chairman Rick Judson said:
“Builder optimism remains above 50 and we are still seeing signs of pent-up demand in many markets across the country. This slight dip in builder sentiment is the result of continuing challenges in the marketplace with regard to the cost and availability of labor and lots and uncertainty in Washington”
In Chart 2: ASA (Temp) Staffing Index the 2013 data is represented by the PURPLE-BLUE LINE. The level of this index is now higher than the 2006 data represented in RED.
Both of these indicators are forecasting that we should see continued economic expansion in the coming 6mos-12mos. This is historically positive for stocks.
Optimism remains warranted in the face of fairly scary headlines.* Warren Buffett said, “Be fearful when others are greedy and greedy only when others are fearful”