Sunday, March 9, 2014

3/7/14 Recap


Hello!


This is a just a brief overview of what happened in the markets Friday

  • Jobs numbers 
    • 175K jobs added in February beating the 140k estimates, a positive indicator considering the dismal January data and the extremely harsh weather conditions. 
  • Unemployment
    • The unemployment rate rose from 6.6% to 6.7%, the increase was caused by more people entering the workforce. 

These two pieces of data are extremely important as the market begins to prepare for tapering. If you need a tapering recap check out my "What the Fed" post.

With previous job releases, good data indicated that the tapering would end and cause the major indexes to go down. Conversely, missing expectations indicated tapering would continue and the markets would continue their record breaking rallies. That trend seems to be coming to and end as the market has slowly started correcting itself for the September taper. 

Check out this article for more details: U.S gains 175,000 jobs in February 

Going into next week...

Markets will be pretty cautious Monday as the bull market hits the 5 year mark. To put it in perspective the average bull market lasts about 4.5 years. Even though it sounds bad, the economy moves in cycles,so this is information will not catch investors by surprise. 


I don't have any positions on right now but as soon as I will post those.



Thanks,


Brit

No comments:

Post a Comment