Today’s jobs report showed a loss of US jobs. This is but hurricane induced a blipa All the underlying data continues to support a growing economy and thus equity markets.
- Q3 2017 Hedge fund letters, conferences, interviews, features etc
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Peter Lynch was one of the best growth investors of all time. As the Magellan Fund manager at Fidelity Investments between 1977 and 1990, he averaged a 29.2% annual return. Q1 2021 hedge fund letters, conferences and more The fund manager's investment strategy was straightforward. He wanted to find growth companies and sit on them Read More
The Household Survey Employment report rose by 906,000 and Light Weight Vehicle sales spiked to a Seasonally Adjusted Annual Rate of 18.57mil. While there is some distortion due to the impact of recent hurricane damage which will be likely moderated in future reports, the long-term economic trends beginning in 2009 should be viewed as intact. I prefer to use the Household Survey as it is the best method to capture the level of those who are self-employed which is not captured by other measures. The Household Survey data is not backwards-adjusted and its month to month volatility reflects the statistical nature of the error band inherent in economic data collection which is in the range of +/- 385,000 on 154,345,000 or 2%-3%. The Establishment Survey by comparison reports employment from companies with official payrolls with frequent revisions to past month’s data. This month’s report showed a decline of 33,000 in reported employment for Sept 2017.
For investors, there is nothing in these reports to undermine expectations for economic expansion and higher equity markets.