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Investors should stop worrying about the jobs data
Historically, stocks have surged following gloomy reports
On Friday, the Labor Department released its employment report for December. You’re no doubt already aware of the data; 524,000 more jobs were lost in December, making for a total of 2.6 million lost in 2008. The losses have been accelerating, with 1.9 million jobs lost in just the last four months. The unemployment rate rose from 6.5% in November to 7.2% in December.
The comparisons being made are bleak. For instance, it’s being pointed out that the 2.6 million jobs lost in 2008 were the most since World War II ended in 1945,…
Canada’s Negative GDP in the 1Q Doesn’t Spell Disaster
Canada’s gross domestic product (GDP) shrank 0.1% in the first quarter (or 0.3% annualized), marking the country’s first decline since the second quarter of 2003.
Declining exports are chiefly to blame, as spending power in the United States – Canada’s chief trading partner – has significantly contracted since the onset of the credit crunch and subprime mortgage crisis last summer.
Exports – and in turn, the Canadian economy – started losing momentum in the second half of 2007. Cutbacks in manufacturing hurt exports, most notably motor vehicles, Statistics Canada reported today (Friday).
The slowing economy gives the Bank of Canada more reason…
2Jun2008 | Money Morning | Comments Off | Continued
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