Welcome to the recession.
January 4th, 2008 by Grant in: Economics, Investing, Market TrendsToday an employment report revealed that seasonally adjusted nonfarm payrolls rose by 18,000 in December, the weakest job growth since August 2003. On top of that, private-sector payrolls fell by 13,000, the first decline in more than four years.
Most economists, as well as the market, were expecting payrolls to increase about 58,000 in December.
I view this as a sign that the economy is starting to falter. Housing is in toilets, unemployment is rising, consumer spending is in limbo, gas prices are high and going higher, and to cap it all off, our credit cards are maxed out (and by “we” I mean Americans in general).
It doesn’t help that the Fed is lowering interest rates either.
Welcome to a recession!
To be clear, I don’t think this is a bad thing at all. Let’s face it, the cyclical stock market can only go up for so long before the economic cycle comes full circle.
I think the economy is at the top of the roller coaster, and the first couple cars have gone over the crest of the hill.
View this as a great buying opportunity for stocks that have been dragged down by the overall market, but are overall very healthy and well run. Now is the time to be in cash, and to be very picky about the stocks you buy.
Tags: Economics | jobs report | markets | recession
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