U.S. Economy

Just How Bad Is the Low Labor Participation Rate for Youth?

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In another sign that the U.S. economy is not as healthy as some in Washington would have you believe, the Bureau of Labor Statistics (BLS) has reported that the labor participation rate among youth aged 16 to 19 in February was a paltry 32.9%.

"The difference between 3% growth in the economy per year versus 2% isn't a 1% slower decline, it's a 33% slower decline, and you're really seeing these numbers add up," said Money Morning Defense & Tech Specialist Michael Robinson on FOX Business' "Varney & Co."

In this video, Michael discusses this troubling trend and offers some suggestions for how Americans can deal with it.

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Profit Massively from This "Margin Call" on American Homeowners

Get ready. There's more trouble ahead for home buyers, home builders, and especially homeowners who took out home-equity lines of credit before the housing crisis. Those heydays have turned into haymakers.

What's already started to happen might not only knock out the formerly aspiring but now petering-out housing recovery, but also might knock the already weak economy to the ground.

Back in the good old days, when banks and mortgage shops were selling mortgage money and home-equity credit lines like carnival barkers wowing crowds into the big top, millions of homeowners stepped right in.

That circus tent was nothing but a trap, however. And now I'm going to tell you what that trap means for those borrowers - and the rest of the economy... Full Story

Low Rates Won't Hide This Looming Threat Forever

Financial markets are experiencing a significant divergence in 2014 between the direction of stocks and bonds.

While the S&P 500 and Dow Jones Industrial Average have traded to new record highs, the yields on benchmark Treasury bonds have dropped sharply.

Normally, one would not expect stock prices to rise and bond yields to drop simultaneously because these movements suggest contradictory readings of the economy.

Higher stock prices indicate bullishness about economic growth, while lower bond yields suggest just the opposite.

However, the inconsistent signals being sent by markets are not as surprising as they seem, given the context of the post-crisis environment in which Federal Reserve policies have distorted normal market pricing mechanisms.

This situation could blindside investors who don't see it coming... Full Story

Stock Market News: Beware of the "Summer Swoon"

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Stock market news: In an appearance yesterday afternoon (Wednesday) on CNBC's "Closing Bell," Money Morning Chief Investment Strategist Keith Fitz-Gerald talked about what he sees the markets doing in the weeks ahead.

"I'm becoming very, very concerned now for the first time in several weeks," Keith tells host Bill Griffeth. "I think a summer swoon is coming."

In this video, Keith talks about why he sees turbulence ahead...

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Stocks to Buy: Get the "Google of Russia" for a Bargain

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When looking for the best stocks to buy, many investors avoid companies and markets that are tangled in bad news.

For many, it seems like common sense to avoid areas that keep generating negative headlines. But for shrewd investors, "bad news" can frequently generate very profitable stocks.

And right now, Russian tech stocks are providing investors with discounted buy-in opportunities. This tech stock in particular has huge potential…

How to Profit from Market Volatility

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During my 30 years as an investor, I've developed five tools that demonstrate how to profit from market volatility. And today I want to share them with you.

With the Nasdaq Composite Index - and tech stocks in general - going through a turbulent stretch of their own, these five rules will help keep you from making mistakes.

You literally can't afford not to read this...

The Fed's "Growth-Buying" Scheme Is Failing

The numbers are in. And they are ugly...

Based on preliminary first-quarter data, U.S. GDP (gross domestic product) growth is 0.1%.

That's not much.

But then again what do you expect for $3.4 trillion dollars of Federal Reserve spending to boost the economy?

So the question is, how is it possible that we've got nonexistent economic growth, or worse, negative growth and possibly another recession looming, when the Federal Reserve since September 2008 has spent $3.4 trillion to prime the economic pump?

This could push the whole economy past the brink... Full Story

Best Stocks to Buy Now: A Hot Biopharma, an Energy Sector Worth $2 Trillion, and More

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Our roundup of the best stocks to buy last week gave Money Morning Members more than a dozen plays in 2014's most profitable sectors.

One pick involves a possible healthcare merger that would combine two industry titans. The duo would create an industry powerhouse with a market cap near $300 billion. Another play revolves around one of the most highly anticipated, and possibly biggest, initial public offerings ever. And a special report from our small-cap trading specialist showed readers a technique for uncovering investment winners today.

Here they are – with more opportunities – in our latest Money Morning best stocks to buy list:

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