Any excuse to rally
August 7, 2009
The unemployment rate fell – uncork the champagne!
The stock market liked what it heard today – despite a net loss of 247,000 jobs in July, the seasonally adjusted unemployment rate fell from 9.5% to 9.4%. The rate of job losses continues to fall and unemployment may not hit 10% after all. Never mind that the declining unemployment rate is due to 422,000 people without work abandoning the job search after months of disappointment. Those folks no longer count as unemployed, so the rate improved. For this, the market celebrated. I return to my favorite market quote – “the market can remain irrational longer than you can stay solvent.”
Be careful out there swimming in the deep water.
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