The Bureau of Labor Statistics (BLS) released its November report on employment this morning which shows that unemployment dropped to 10.0% from 10.2% in October. While any drop in the “headline” unemployment rate is likely to be greeted with celebration
There is certainly no shortage of commentary on the unemployment statistics that come out every month and most value investors do not make investment decisions based on macroeconomic factors alone. In general, it is always a good time to invest when securities can be found that provide solid return potential and have a large margin of safety. But does this mean that value investors should just ignore today’s Employment Situation Summary from the Bureau of Labor Statistics (BLS)? Read this article for one opinion.
A very brief video clip of Federal Reserve Chairman Ben Bernanke announcing that the recession is over has been seen on nearly every nightly newscast this evening. What is more relevant are the comments Mr. Bernanke made prior to stating that the recession is nearly over and the implication of his statements on Federal Reserve policy in 2010. Read this article for a video of Mr. Bernanke and analysis of the implications of his views.
President Obama’s chief economic adviser has indicated that he expects unemployment to stay at elevated levels for “a few years”. In a candid interview with Nightly Business Report, National Economic Council Director Larry Summers did not express much hope for a quick drop in unemployment. Read this article for more details.