Why stocks rose after jobs disappointment
Traders have apparently decided to buy into the argument -- again -- that weak U.S. economic numbers mean more quantitative easing.
Back to reality.
At the time of this writing, Jim Jubak didn't own shares of any companies mentioned in this post in personal portfolios. The mutual fund he manages, Jubak Global Equity Fund (JUBAX), may or may not own positions in any stock mentioned. For a full list of the stocks in the fund as of the end of the most recent quarter, see the fund's portfolio here. Stocks are all traded,at least by the big firms, via computer with logarithm programs. The hedges that occur currently are based on the possibility of QE3 coming down the pike. Folks are getting positioned for gold{which will go up with a QE3}or grabbing prime stocks which have proven to go up during past easing attempts.
For all its intent and pupose QE is worthless. Printing your own currency to make more fiat to buy your own bonds is complete disaster in the making. But it will show a short term increase in the market and give a false impression of an improving economy, which the current president of the US will want.
"or something to stimulate the economy, when the Fed’s Open Market Committee meets on Sept. 13."
Great. The only problem is that stimulus does NOTHING to make a company create a job or hire a person. However, the traders are correct that it does boost stock prices. And that is ALL it does.
2009 65.7 65.8 65.6 65.6 65.7 65.7 65.5 65.4 65.1 65.0 65.0 64.6
2010 64.8 64.9 64.9 65.1 64.9 64.6 64.6 64.7 64.6 64.4 64.5 64.3
2011 64.2 64.2 64.2 64.2 64.2 64.1 64.0 64.1 64.1 64.1 64.0 64.0
2012 63.7 63.9 63.8 63.6 63.8 63.8 63.7 63.5
Labor participation rate now stands at an all time low since the administration took office, and all the media tells us Americans are getting back to work. I guess I don't understand how the when unemployment went down .2%, the labor participation rate went down .2%. I guess in an Obamaconomy you can have it both ways. After all when you're doing such a poor job you have to lie about a lot of things.
Old Airplane Driver- Are you another recovering "smoker" from the 60's. I'm sure you were flying. Is that the basis for your nickname. There is limted hiring in the USA because we live in a global economy. Nationally we have a idiot occupying the white house scaring Business off with taxes and regulations.
Obama was a Senator for six months. He never had a job in the private sector. As a lawyer his claim to fame (Obama vs citibank )(look that one up on the net).
Obamcare is a disaster with massive tax increases. So why be in the USA? To have a commie like Obama redistribute to the druggies, 25 million illegal/invaders and those that have been sitting on there lazy butts. LEt's not forget Sandra Flukes 7 dollars worth of birth control. This guy is worse then Jimmy Carter. That's why job growth is heading toward zero.
They expected 1% of the 12 Million to be employed, they got 0.75%.........
At this rate Obama will be at 6% unemployment just in time for his daughters to enter the work force!
LMFAO! Obama begging for more time is like a crack addict begging for another rock! "I promise it will be better if you can just give me one more"
for those who belive that any movement the last 3 years has anything to do with true economic value has just bought the farm of the obama lie machine.
so much stimulus money but so little to show for it and het no one works. Great way to fo forward ?????????????????
wise up lefties, obama is still an acorn punk from chicago
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