Re: Jul 3 2014, 09:56 ET
Anyone have any opinions when the next preferred sell off will start?
I truly hope that investors keep in mind the following:
The labor market remains weak, with a labor force participation rate stuck at 62.8 percent, the lowest since 1978. Construction jobs reached their highest since June 2009 but are still more than 1.7 million jobs below its 2006 peak, according to an analysis of jobs numbers by the Associated General Contractors of America.
Moreover, hiring has tended to be predominantly in low wage jobs, leading to stagnant wage growth, and the number of hours worked per week has not changed.
"The headline number masks the lingering structural weakness in the U.S. labor market," said Lindsey Piegza, a chief economist at the Sterne Agee brokerage.
"Even if we saw June's rate of job growth every month from here on out, we still wouldn't get back to health in the labor market for another 2 1/2 years," said Heidi Shierholz of the liberal Economic Policy Institute.
Yet even with the above facts, we'll probably see some "investors" react as if The Fed will raise short term rates above 20% before the end of 2014, when I seriously doubt that we'll see a 4% 10yr Treasury much before 2025 ..........................
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