Hold “em or Fold ’em?

 

 

The U.S stock markets have come under selling pressure lately base upon “Good News”. Go figure. Good news is often bad news and vice versa when it comes to the markets. Yes the market is showing some signs of weakness after a much better than expected 280,000 new jobs created in May.

The reasons are twofold. First, market participants are worried that the rate of new job formation is slowing compared to 2014. That’s hardly good considering the U.S. economic recovery has been anemic at best and, second, too much good employment news could signal the Federal Reserve they are clear to raise interest rates which could slow the recovery!

Thus, good news is bad news, is good news, is bad news, and the market fluctuates not knowing which way to turn. Well, as I have spelled out on numerous occasions the economy is very unlikely to experience a recession or worse anytime in the near future and likewise the economy is very unlikely to get up and jog let alone run. As I see it we will continue to have more of the same seesaw upwardly trending stock market albeit with a slower growth pattern than we have experienced the last few years.

 

Prognosis? Hold ’em!

For a comprehensive list of market/economic pros and cons please see,

Baron’s Briefing, May/June 2015

Thanks all!

Baron