Worst jobs report of the year comforting for investors
Worst jobs report of the year comforting for investors. Mohamed El-Erian says Friday's jobs report (which recorded the worst monthly performance so far this year - 142,000) actually wasn't all that bad. The report confirms that the U.S. economy, while steadily improving and a lot stronger than Europe's, has yet to reach the escape velocity needed to overcome the risk of stagnation. It's weak enough to keep the Federal Reserve in its current policy mode, and hence comforting for financial markets, but not bad enough to jolt Congress out of its dysfunction. El-Erian concludes Most investors, for their part, will find this report somewhat comforting, particularly amid recent worries that interest-rate jitters could undermine stock and bond markets. Both stock and bond futures pared their losses immediately after the report was released this morning. Read the article: (VIEW LINK)
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