Despite the pandemic, despite events in Washington, D.C., and despite bad jobs report this morning, stocks set a new high closing price today.
In a world of turbulence, here’s this week’s report on the numbers that drive the economy and stock market prices.
According to today’s employment situation report from the Bureau of Labor Statistics (BLS), the U.S. netted a loss of 140,000 jobs in December. That was a disappointment attributed to the worsening Covid public health crisis.
December’s job loss follows a huge gain of 336,000 new jobs in November.
BLS today revised October and November’s job gains higher by 135,000. The unemployment rate remained the same at 6.7%.
To put December’s job loss in proper context, the U.S. has recovered 12.3 million jobs since April 2020. To recover to the all-time employment peak of February 2020 – just before the pandemic hit – the U.S. will need to create another 9.8 million jobs. That would put the employment rate back to the peak of the last economic expansion, the longest in modern history, which began in April 2009. The jobs recovery to the February 2020 peak in jobs is expected to take about three years.
Despite the job situation, stocks and other investment that historically paid a premium return compared to highly-liquid 60-day U.S. Treasury bills, continued to appreciate in value.
The Standard & Poor’s 500 stock index Friday set a new closing-high of 3,824.68. The new value paradigm caused by unprecedented low bond yields and low inflation has changed the traditional investment asset valuation paradigm. Please see our previous updates on this topic or contact us with questions about how the change in the relative value of bonds versus stocks might affect a portfolio invested for long run sustainability.
The S&P 500 index gained +0.55% from Thursday and +1.81% from a week ago. The stock market has gained an astronomical +52.36% from a March 23rd bear market low.
Nothing contained herein is to be considered a solicitation, research material, an investment recommendation, or advice of any kind, and it is subject to change without notice. It does not take into account your investment objectives, financial or tax situation, or particular needs. Product suitability must be independently determined for each individual investor. Tax advice always depends on your particular personal situation and preferences.
The material represents an assessment of financial, economic and tax law at a specific point in time and is not intended to be a forecast of future events or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete, and is not intended to be used as a primary basis for investment decisions.
Any investments or strategies referenced herein do not take into account the investment objectives, financial situation or particular needs of any specific person. The material represents an assessment of financial, economic and tax law at a specific point in time and is not a guarantee of future results.
This article was written by a veteran financial journalist based on data compiled and analyzed by independent economist, Fritz Meyer. While these are sources we believe to be reliable, the information is not intended to be used as financial advice without consulting a professional about your personal situation.
Indices are unmanaged and not available for direct investment. Investments with higher return potential carry greater risk for loss. Past performance is not an indicator of your future results.