Friday, January 10, 2014

Weak Jobs, Weak Dollar

The monthly employment report was disappointing as it came in dramatically below estimates of the smartest guys in the nation.


71,000 jobs created last month. The number was met with incredulity on the tube...


Bloomberg here


and in the print media


Forbes


The general reaction was one of disbelief and a search for answers. Most agree the number will be revised up in the coming months.


The debate over the effects of unemployment insurance on job seekers and the effects of retiring workers dropping out were the main topics.


Bottom line. The economy may not be as strong as we would like.


What does this mean? Low rates for as long as the eye can see.....


And a weak economy  means a weak dollar. And the trading action in the currency ETF's this morning leads me to conclude this weakness may persist, and the dollar may commence a slide.


Housing strong.
Dry bulk shippers weak on the recent weakness in the Baltic Dry index. Dollar weakness may correct that..??
EEM, emerging markets strong this morning.
And we may see some shorts covering in the gold and silver markets.


control risk,
gh



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All comments are appreciated as it will give me a chance to adjust my content to any real people who may be out there. Thank you. gh