Jobless Reports Fail to Improve Market
The stock market seems to be especially susceptible to the headlines for the past two years. Ever since the big US economic meltdown which started in 2008 (or at least made itself known then), the stock market seems to be the most volatile I’ve ever seen.
Granted, I haven’t been on this earth all that long, and I certainly haven’t been old enough to care about the various ups and downs we’ve had over the past few decades, such as the out of control inflation and the economic downturns of the 80′s.
What’s funny about the current state of affairs as it applies to the stock market and the sentiment that goes very deeply into the movements of the market is that it seems to move inversely at times.
Even bad news can move the market up, or down. It really depends on the perfect union of emotions that happen when the news headlines pop up that day. There are so many different headlines, and all of a caliber and seriousness that differ in their positivity or negativity that the markets seem confused.
The recent news that the job market is “improving” didn’t lift the market really at all. Common sense would tell you that the jobs report should have pushed stocks higher due to higher consumer confidence, but the inverse actually happened.
This goes to show how you can’t really count on the headlines to do what you think they will when it comes to the market. Emotions are running high. People are not only gunshy, but they are still scared due to events that have happened in the not too distant past in relation to jobs, housing, and stocks.
It’s gonna be a long time before the stock market gains any sort of sense or stability that makes common sense to most people in other words. Until then, it is pretty much a crap shoot as to what’s going to happen that day in terms of stock movement and which sectors move where.
Even jobs reports that say jobs have been added to the market are not regarded as good news. That’s because there are still so many people out there that are out of work and the unemployment rate is still way too high in order to sustain a good rally that is long term.
