While February’s jobs report showed 90% fewer new jobs than expected, there are three crucial things you need to know before making changes to your portfolio.
Few economic reports are as closely tracked as the month government job estimates. Not just does this give investors some idea of how strong the economy really is (companies won’t hire unless they expect their business to be strong in the future), but it also provides important wage growth data that is a key predictor of consumer spending that powers about 70% of the US economy.
In other words, the long-term trend in the labor market is an important fact to sustain the longest bull market in US history, and keep the S&P 500, Dow Jones Industrial Average, and Nasdaq marching higher over time.
Well, the February jobs report was downright ugly, with an estimated 20,000 net jobs created last month, 90% below the 185,000 economists were expecting. But while such shockingly weak figures might cause many to fear a recession and bear market is coming soon, there are three very important facts to know before you risk making a costly mistake by selling great companies in your portfolio unnecessarily.
The post 3 Things Investors Need To Know About February’s Horrible Job Report appeared first on Dividend Sensei.
Source: Dividend Sensei