Big unemployment figures

So yesterday’s posting looks particularly timely after today’s big announcement of the number of jobs lost by the U.S. economy in the month of November. In case you have not heard, the estimated number of jobs lost was 533,000. Furthermore, the unemployment rate ticked up 0.2% last month. In case you did not read yesterday’s posting, these figures are pertinent and telling.

It will be important to watch the response of the financial markets to this news. Late last month I had said that I thought the bottom of the financial market collapse had been reached when the stock markets rallied for 4 continuous days, and more importantly, they rallied in response to news of President-elect Barack Obama’s appointments and proposed economic policies.

I am still holding to that call and the reason is that the bad news about the economy has been very much anticipated and, in my opinion, baked into the prices of many businesses. However, if my conviction in my prediction of the financial markets having reached their bottom late last month was an 8.5, it is now probably a 6.5.

Stay posted.

I hope that each of you has a relaxing and rejuvenating weekend!

Jason