Published February 18, 2013
Earlier this month the Bureau of Labor Statistics (BLS) released an employment report that was the latest in a series of mediocre economic news. In contrast, the stock market has begun 2013 as if happy days are here again. Which do you want to believe?
Employment growth stumbles
The BLS report showed 157,000 new jobs in January. This was disappointing -- think of 200,000 as an informal benchmark for decent monthly job growth, and with the fiscal cliff out of the way, many had hoped 2013 would get off to a stronger start.
Some of the sting was taken out of this number by strong upward revisions to the job gains for November and December, but viewing these months together with the latest figure only highlights how much things seem to have slowed down in January.
Making sense of the stock market
The S&P 500 Index gained over 5% in January, a roaring start for a lackluster economic environment. Why the disconnect between investor behavior and the big-picture economic data? Here are four possible reasons:
Those with money in the stock market can enjoy its strong start to 2013, though they had better hope some improved economic fundamentals come along to support the rise in prices. As for depositors in savings accounts, until those improved fundamentals come along, they are no closer to seeing higher rates than they were a year ago.
The original article can be found at Money-Rates.com:
The mismatch between the stock market and the economy