There’s plenty of reason for investors to take the conservative road. Fears of the stock market rally going beyond what the economy can really take are founded especially if unemployment remains to be a problem.
August saw 216,000 employees lose their jobs pushing unemployment rate alarmingly close to double-digits to 9.7%. That’s a 26-year high. Currently, 14.9 million Americans are unemployed.
July’s rate was at 9.4% though the government report indicated that July saw the least jobs lost for the year. The total number of jobs lost so far ever since the the start of the recession – 6.9 million.
While there remains to be positive signs of a recovery, many experts still consider unemployment figures as a definitive statistic to gauge the chances of a real recovery. Businesses continue to struggle as spending power is decreased with many people out of jobs and no access to income.
Source: BBC
