Friday, November 07, 2014

The most important jobs report ever (until next month)...

Basically, the jobs report has become a guaranteed news filler for the cable news channels and it's value as an economic indicator has diminished over time given the shifting nature of the job market in the US.

While the headlines will focus on 214,000 jobs and the 5.8% unemployment rate it's worth noting the composition of these jobs.  When 20% of the jobs created last month were in the food and beverage retail you have to question the quality of those jobs.  

I suspect that there are enough mixed signals in this report to keep the markets afloat.  As a reminder stocks have had their biggest 12 day move EVER in the past 2.5 weeks since the Fed hinted at the possibility of maybe, sort of, kinda, considering QE4ever.  The markets disconnect from fundamentals and reality has never been greater, but stocks remain at record highs fueled by hopes of more Fed support.  You have to ask yourself, do you feel lucky?  Well, do you........punk?

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