This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Economic Picture Is Getting Ugly

NEW YORK ( TheStreet) -- It appears to be getting a bit ugly out there, with the S&P 500 down 5.2% since Election Day. The markets have a lot to grapple with these days, the fiscal cliff and more of the same story in Europe.

The employment picture does not appear to be getting any brighter, and with the reality that the Affordable Care Act will be fully implemented, we are hearing of more companies either laying off workers, or pushing them to part-time status in order to avoid covering health employee's health insurance.

Frankly, I believe that there will be a deal to avoid the fiscal cliff. As much as I'd just hope that it's not another temporary fix which will breed more uncertainty, the reality is, if anything does get done, there's simply not enough time to make it anything but temporary. Washington has a lot of work to do in a short period of time -- just 6 weeks -- encompassing Thanksgiving and Christmas, so if a deal does get done, there won't be a great deal of thought behind it. What else is new?

Frankly, the implementation of the "Affordable" Care Act may be even more frightening. Regardless of your political views, most would agree that this monster piece of legislation was rammed through Congress, with enough promises made to get the necessary votes.

Just getting it passed was nirvana to those pushing for health care reform, but the implementation of most of it was so far out that little rational thought went into it. Now reality is setting in, and I for one am frightened of what this legislation will do to the employment picture.

Again, this is not intended to be a political narrative. There are strong feelings on both sides of the health care debate. However, any legislation that deters companies from hiring workers, or encourages them to shift fulltime headcount to part-time, was not very well thought-out in the first place. Employers offer benefits to employees, and when the economy is growing, and labor markets are tight, companies use benefits to attract employees.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
DRI $62.25 0.00%
PZZA $56.59 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs