MarketWatch held a poll asking “investors” what outcome for today’s jobs report would elicit a better reaction from stocks. 53% said it would be better if the unemployment rate was higher than expected, thus prolonging the need for Fed bond-buying.
Are they right? In the short-term maybe. In the long-term, this is an outcome desired only by assholes. You’re rooting for more Fed intervention? More heads of household who cannot find work? What’s wrong with you?
I’d rather have a 15% correction and erase the entire year’s gains but see the Fed start to back away than have another six months of debating the taper. I’d rather a strong jobs number and a path out of this stagnation than more excuses for stimulus.
But that’s just me, someone who is more concerned with economic progress for America as opposed to this month’s trading P&L.
Bad is not good. Good is good, unless your timeframe is the lifespan of fly.
Or maybe I’m the problem.
Goldman on why this report is more important than usual. (Business Insider)
Barry Ritholtz on why it’s not. (TBP)