Unemployment today DROPPED another.1% to 7.6%. But unfortunately the rate did not drop because of good news and economic vitality, it dropped because a huge number of job seekers just DROPPED OUT of the job seeking market. The labor participation rate dropped to its lowest reading since the 1970'S!
SO we have had a slew of people accepting part time jobs who want full time jobs, now we have a slew of part timers and those who cannot find any job all dropping out.
Waged are stagnant, energy, food and some other costs continue to rise in an atmosphere which I will label DEFLATIONARY.
5 years of failed Government and Central Bank inflationary, money printing policies and after 5 years we have such a flacid economy?
These historic low interest rates do not stimulate INVESTMENT, they DO stimulate risk taking and help support speculation in risky asset classes at the expense of SOUND MONETARY POLICY.
I have expounded for years how I do not like the FED policy of 0% interest rates and how it is helping to misallocate funds to risky investments and away from sound economic growth strategies.
I have complained for years how these same policies unfairly target the Conservative group of investors and have taken away any chance of a SAFE RETURN.
With little else to choose, it causes the vast majority to go in the same direction, crowd the boat so to speak.
This is the preverbial game of MUSICAL CHAIRS, and when the music stops, it isn't going to matter where interest rates are. The HERD has followed the path of least resistance, and when this trend reverses and it always does, when FEAR that 4 letter word creeps back into the market, you are going to witness a MAJOR HAIRCUT to stock prices, IMHO