Reasons?
The stock market is booming.
Interest rates are still low.
Home values are stabilizing.
The dollar is strong.
But,...
All this is about to change as the Fed starts to unwind its massive asset position.
If you're not hedged, do so. If you are hedged, it might be time to take some additional risk.
* * * * * J B K * * * * *
San Francisco
Consumer spending, which accounts for about 70 percent of the economy, rose at a 3.6 percent pace last quarter, compared with the 3.3 percent rate forecast by economists and a 1.6 percent gain in the prior three months. The increase was the biggest since the first quarter of 2007.
Consumer Spending
Spending added 2.55 percentage points to GDP. Household purchases dropped 0.6 percent last year, the biggest decrease since 1974.
http://www.bloomberg.com/apps/news?pid=20601087&sid=a_5weT0lkjp0&pos=1
