Peer Pressure and the Employment Report

“If such and such, jumped off a cliff;  Would you?” 

Peer Pressure

The peer pressure talk I received several times as a kid, and most likely will be repeating verbatim to my kids soon enough.

Yesterday in the capital markets, peer pressure was the major source of cheers and tossed a positive tone Globally, which eventually made it’s way to the US capital markets. China, a country with four times the US population, and currently growing at four times the US, (8% recent GDP versus 1.6% US), released several positive economic numbers, along with a US economic number on housing, (Case-Shiller Index) sending the global capital markets in high gear.

Do not forget that a lot of professional investors are on vacation, making capital markets more magnified in their response to almost any report. 

Today, I have the opportunity to visit with multiple public company CEO’s and CFO’s in an all day CFA related event.  I greatly enjoy the opportunity to hear from different companies and their thoughts on the current environment, as well as the changes, and adjustments they expect to make going forward.

Tomorrow is the last trading day before a long weekend and we have great interest in the Employment Report being released at 7:30 Am, most expect a loss of 120k jobs, a dramatic positive difference could give credence to our mid-economic cycle slowdown theory we have hung on to while others have thrown in the towel.

We wish you a wonderful long weekend, and hope you have time to enjoy, and spend time with friends, and family.

Have A Good Day!

JK