Via MarketWatch.
It’s interesting that the report of gains in jobs and a drop in unemployment was followed by a drop in stock prices.
Conceivably this could be been due to the improvement being less than expected, but analysts quoted in my morning newspaper said investors fear that the apparent recovery will cause the Federal Reserve Board to stop holding down interest rates in order to stimulate the economy.
A certain number of people can be expected take their money out of the stock market and put it in savings accounts in banks, or in bonds, because they would getting actual interest income again.
In other words, stock prices reflect an unsustainable government policy, and not the real health of the economy.
Via TownHall.com.
Still, it’s good news that the unemployment rate is falling, and is falling by every measure.
Phil Ebersole's Blog 