This week offered a few economic reports (small business confidence, Beige Book, jobless claims, inflation gauges) as well as the kickoff to earnings season. In such report-lite conditions, we have seen euro zone issues bubble back to the surface in troubling ways � and the beginning of the week saw just that take place.
Of course, it didn�t help that last Friday�s weaker then expected jobs report raised a cautionary flag for some, alarm bells for others. My view: the biggest weakness in the jobs numbers was the number that the government calculation doesn�t factor into the unemployment report or rate � the number of people who have opted out of looking for work. That number remains a recessionary number � and to read the headlines, you�d think that was new news. But for us, the report simply confirmed the theme we�ve been noting all along, and also noting that the Fed has been hinting at recently; the jobs recovery is for real, albeit still weak, with quality of jobs and level of pay a core issue for those hired, even as opting out is a legacy issue that continues to be a headwind for faster growth.
ETF Trader - 2012-04-12 (Vol 9 No 15)
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