Short-Term Key +10
Long-Term Key +45
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Inside this week's update...
***** The market laments the layoffs.
***** 3 extremes that point to a rebound.
***** Hang in for the next month or two, after which you may be well rewarded.
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Last week ended on a sour note with December's employment statistics showing 7.2% unemployment and an additional loss of some 524,000 jobs. Not surprisingly, the S&P responded by falling some 40 points or so for the week.
But as bad as the employment data were, at least investors can take comfort in the fact that unemployment tends to be a lagging indicator. Never in history have markets bottomed after unemployment peaked. Rather, stocks have always begun rising many months before unemployment reached its worst extreme.
Certainly, we may see more bad employment figures for some time. Nonetheless, we must recognize that last year's, and especially last quarter's, figures were worse than we have seen in a very long time, and that extremes do not last forever. The question, therefore, is when will investors start looking towards the future that lies beyond this period of layoffs?Read more...
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