Great Jobs Report – Market Tanks
By: Tim McPartland,
Todays jobs report was slightly better than expected and the unemployment rate dropped to 5.6% (assuming you believe all of the government numbers)–normally great news–but not today I guess. While normally reports that are as positive as today would move interest rates upward in this case they nor only haven’t moved upward, but are dropping while stocks crater once again. You really have to believe that all of the movement in the stock markets are simply game playing by major money handlers–certainly mom and pop investor aren’t making these large up and down movements occur. In the end it doesn’t really matter too much to us, but we do worry a bit about a time where computer generated buying and selling gets out of control and we have a large ‘flash crash’.
Through the weeks gyrations all models are performing excellently with gains being held in the 2014 and 2015 Blended Income models. Dividends will begin to roll in next week and this will add a bit of juice to the mix. Also ‘earnings season’ will begin next week and this will add more data to the mix and give us an indication where corporate American is heading at this time–certainly will help define the holiday season spending as well.
For now we sit tight–no buying, no selling. We have plenty of dry powder in case we find an issue ‘on sale’ or if there would be a new issue that looked attractive. Thus far through the first full week of the year everything is near perfect for us (of course once we say that the markets will go to hell).