FOXNews.com - New Jobless Claims Jumped to 496,000 as Heavy Snow Caused Rise in Layoffs.
Why is only the bad news "unexpected"? Anyone following the economy closely would not really consider a rise in new jobless claims unexpected. The economy has been limping for awhile without job growth and will continue to do so for the foreseeable future. As I have written before, labor is often the largest single expense for a business. When the top line isn't growing and owners can't comfortably forecast the near term, they shift to managing the cost structure tightly. That means layoffs. Not really surprising. Unfortunately, it's unlikely to change in the near term as we still don't know what the cost impact will be of such things as health-care reform.
Don't be surprised the "unexpected" headlines. A healthy skepticism is a valuable asset as an investor - you may give up some upside by not going "all-in" but the downside insurance will be worthwhile.
Why is only the bad news "unexpected"? Anyone following the economy closely would not really consider a rise in new jobless claims unexpected. The economy has been limping for awhile without job growth and will continue to do so for the foreseeable future. As I have written before, labor is often the largest single expense for a business. When the top line isn't growing and owners can't comfortably forecast the near term, they shift to managing the cost structure tightly. That means layoffs. Not really surprising. Unfortunately, it's unlikely to change in the near term as we still don't know what the cost impact will be of such things as health-care reform.
Don't be surprised the "unexpected" headlines. A healthy skepticism is a valuable asset as an investor - you may give up some upside by not going "all-in" but the downside insurance will be worthwhile.
