Contact Us Disclosures Blog
 
Make an Appointment Contact Us Podcast Blog
Market Commentary Audio Archives Book Shelf InvestAbility Center

Virtuous Cycles

March 8, 2013 – 5:58 pm

114918Everyone was waiting for the jobs report out this morning and they were not disappointed. 236,000 new jobs were created in February with the unemployment rate falling to 7.7% from 7.9%.That was much better than expected and a welcome relief.

We need good quality new jobs to put people back to work who are no longer looking for work as they gave up the job search and are no longer counted as unemployed. Jobs create more jobs as people spend their paychecks boosting our consumer driven economy. It is a virtuous cycle, more jobs better economy better economy more jobs.

The fear is that with the tax increases fostered on everyone as of January 1st and the sequester that just started on March 1st that maybe this will slow job growth. That may be the case but I doubt it will stop it. Those two events are just too small to really mean much.

Meanwhile let’s all hope that the world will also get on this virtuous cycle because that would be significantly more impactful. With all the economies on board the cycle would be much stronger and last a lot longer.

Good Trading
Steve Peasley

Post a Comment