Job Market In Question
The housing market has turned around and consumer spending has increased but the job market still remains an issue. 246,000 jobs were added in February according to the Labor Department but only 158,000 jobs (statistic by ADP) were added by the private sector last month. This mediocre job report is raising concerns because jobs are being added at a slow pace in comparison to early 2012; it is a potential indication of a longer-term slowdown while unemployment sits 1.2% above the FED’s target rate of 6.5%. Many economists are projecting that economic growth will slow later this year which would further exacerbate the conditions of the job market.
Fannie reports profits for this first time in 18 quarters, Fourth Quarter GDP was expanded, U.S. Stocks reaching highs and Treasury yields at close to all-time lows… yet the unemployment rate is not indicative enough of the strength of our economy and investors are hedging against the economy because of its inevitable downfall. Some days The Wall Street Journal predicts economic stagnation in its articles while others days prophesize growth and turnarounds. Imagine a world where everyone agrees on everything… I just did and wow… things are really boring there.
The Wall Street Journal