Employment Predictors Continue to Point to Further Gains by Todd Sullivan, ValuePlays
The temp staffing index is within a whisper of an all time high just over a month ahead of when it typically peak for the year. This is singling further NFP gains in the months ahead as hiring will continue to accelerate.
The latest ASA Staffing Index was reported at 104.94. The last time we saw this level was Dec 16, 2007.
The trend for employment remain in a decent upwards-see the chart immediately below. The Gallup Job Creation Index reflected a slight dip in October with the unraveling of the ‘hyperinflation trade’, but remains at elevated levels (28) indicating continued positive hiring levels.
Many seem puzzled by the incessant rise in the SPDR S&P 500 ETF Trust (NYSEARCA:SPY), but the rising employment trend is all one needs to see in my opinion if your investment horizon is longer term. Economic trends for equities remain quite positive and my recommendation continues to strongly favor stocks over bonds.