Top Line Econ News Is Nearly Useless
It's a big mistake to react to headline reports of employment, and an even bigger mistake to make investment decisions based on them. There are several reasons why. But we've found, historically when the year over year of change in non-farm payrolls falls by 0.9 percent or less, it is usually a good time to begin accumulating stocks again. That's because the stock market itself is a leading indicator. The best news of all is where the rate of change stands today: The reading turned positive as of the July report and historically this has meant that stocks will generally rally into the foreseeable future.
