A picture perfect jobs reportMarch 10, 2017— The February jobs report was ideal in terms of an indication of ongoing labor market strength, stronger economic growth, and bolstering the case for rate hikes from the Federal Reserve. Headline job growth of 235,000 was a bit above market expectations and essentially the same as January’s upwardly revised 238,000. The unemployment rate ticked down one-tenth to 4.7% indicating increasing labor market tightness.
March 6, 2017— A lot can change in two weeks, especially in the financial markets. It was just two weeks ago that we argued that the Fed was likely to take a pass at their March 14-15 meeting and opt to wait until later in the year to hike rates. Although the economic picture has not changed significantly, the market expectations of a rate hike have changed dramatically, moving to near certainty.
March 2, 2017— Headlines announcing new record highs in the U.S. equity markets seem to be happening almost daily. While this is certainly good news given our positioning favoring equity markets, we have to stop and ask where this leaves market stability as prices stretch ever higher.