Why Your 401K May Be Looking Better Than The Overall U.S. Economy

Investors are seeing a lot of bargains on Wall Street.

Why? Because many individual companies boast good bottom lines. Why? Because borrowing costs are way down. Why? Because small investors are hungry to buy bonds.

Corporate earnings are up. You can't ignore that.

The Los Angeles Times says:

Why is the U.S. still losing jobs? As economist Allen Sinai put it: Companies are "making good money without people."

That isn't a path to long-term prosperity, but remember: Many major American businesses (the kind you probably own in your 401[k]) are betting on faster growth abroad than at home, anyway. And their biggest investors, for the most part, don't care where in the world they make money, as long as they make it.

I also note in the column that, as long as doubts persist that the U.S. economic recovery can sustain itself, the Federal Reserve (which meets this week) will remain in a supporting role with near-zero short-term interest rates.

And with "cash" investments paying nothing, and long-term bond yields low, it's that much harder for investors to bail on stocks en masse.