April Jobs Report: Things Are Looking Up

April Jobs Report: Things Are Looking Up
<a href="https://pixabay.com/users/Mediamodifier/">Mediamodifier</a> / Pixabay

April Jobs Report: Things Are Looking Up by Brad McMillan, Commonwealth Financial Networks

The employment report for April came in just right, not too hot and not too cold.

At 223,000, it was a bit below expectations, but not meaningfully so. More important, it was back above the 200,000 threshold and well above the 126,000 of last month, prompting immediate sighs of relief all around. As expected, the March number now looks like a blip rather than the start of a downward trend.

Overall, a positive showing

Despite the strong headline number, though, there were signs of weakness. March jobs were revised down from 126,000 to 85,000, making a bad month even worse. Wage growth came in at only 0.1 percent month-on-month, also poor.

Choice Equities Fund March 2021 Performance Update

Choice Equities FundChoice Equities Fund generated a net return of 29.2% for the 1Q 2021 resulting in annualized returns of 31.7% per year since inception of January 2017. Q1 2021 hedge fund letters, conferences and more Choice Equities Fund, LP Overview Choice Equities Fund (“CEF” or the “Fund”) is an investment partnership that seeks to generate market-beating Read More

On the positive side:

  • The participation rate rose, meaning more people were working overall.
  • Both the unemployment and underemployment rates declined.
  • Of particular interest, manufacturing jobs actually increased slightly, despite the strong dollar’s dampening effects on exports.

The takeaway: the recovery continues at a healthy pace. This is good for the real economy, and it should be good for the stock market as well. Although the jobs report was positive, it wasn’t so strong as to push the Fed to raise rates sooner than the September expectation, which should cheer up the market.

Once again, those who predicted doom based on one month of weak job growth have been proven wrong.

No need to worry about the dollar, either

Beyond employment, one of the perennial tropes of doom and gloom is the collapse of the U.S. dollar. This theory has become embarrassingly wrong as the dollar has moved to multiyear highs, so a new story has emerged: the dollar will be replaced as the world’s reserve currency.

I got an e-mail yesterday from a worried reader with a link to an article about the International Monetary Fund (“one of the most secretive and powerful organizations in the world”), which apparently plans to “announce a reserve currency alternative to the U.S. dollar.”

In fact, the article is alluding to the IMF’s possible inclusion of the Chinese yuan in the basket of currencies used for its Special Drawing Rights—a normal bureaucratic move that would simply formalize something that has, in essence, already occurred. The doomsayers are just dressing the situation in a Halloween mask to scare people into buying what they’re selling. (It’s no surprise that the company behind the “expert” quoted in the article, which has been calling for the end of the world since before 2008, has been sued and convicted for fraud.)

Just as with the employment data, not only is the world not ending, but things seem to be getting better. As of today, that looks very likely to continue.

Previous article Short-Selling With The O’Neil Disciples: Turn To The Dark Side Of Trading [Book Review]
Next article Mark Mobius On Emerging Markets
LPL was founded with a pioneering vision: to help entrepreneurial financial advisors establish successful businesses through which they could offer truly independent financial guidance and advice. Today we provide an integrated platform of proprietary technology, brokerage, and investment advisory services to over 13,500 financial advisors as the nation’s largest independent broker/dealer,* making us a leading distributor of financial products in the United States. In addition, we support over 4,000 financial advisors with clearing services, advisory platform, and technology solutions. Even as our firm has grown over the years, we remain singularly focused on helping financial advisors to manage the complexity of their investment practices so they can better serve their clients in achieving important financial goals. And, because we do not offer proprietary products, LPL enables the independent financial advisors, banks, and credit unions with whom we partner to offer their clients truly objective, conflict-free advice. Our open-architecture platform provides our customers with access to thousands of commission, fee-based, cash, and money market products manufactured by hundreds of third-party product sponsors.

No posts to display