The economy is now in recovery mode. Although we have 9.7% unemployment, the most in 20+ years, we hear that the economy is in recovery. Earnings from companies are roaring back due to all the layoffs and cutbacks. Companies are growing because the American Consumer seems to be spending again (in the last quarter, Jan-April). Restaurant Stocks are way up today, and internet companies are up. I do not know if the stock market can increase any further. Companies are not hiring en masse. The stimulus is running out, and the FED is about to think about increasing interest rates.

However, we are in America and more people are spending their paycheck, continuing the slide as the government provided incentives to buy houses, cars and furniture. Obama says today that the crises is over, were in the clear, and theres no more dire straits. One year from now, if unemployment does not lower dramatically, then the market will decrease again.

The economy could slip into a second recession in 2011, due to unemployment and stimulus running out. We may be doing well right now. But, that doesn’t mean go out and spend all that you earn. Think of ways for yourself to survive on less, so you can use it for the future if your unemployed or retired.

Be well and live forever!