Lombardi: Stock Market Commentary & Forecasts, Financial & Economic Analysis Since 1986

job creation

What Job Growth? Labor Participation Hits 30-Year Low

By | October 9, 2014

Job GrowthFinally, some good news for the U.S. economy?

Last week, the U.S. Bureau of Labor Statistics reported 248,000 jobs were created in the U.S. economy in September, pushing the unemployment rate down to 5.9% from 6.1% the previous month. (Source: Bureau of Labor Statistics, October 3, 2014.)

The September jobs market report showed good job creation in sectors like professional and business services, information, mining, construction, and financial. Combined, these … Read More

What the Worst Jobs Report of the Year Really Tells Us

By | September 12, 2014

What We Found Buried in August’s Jobs ReportA week ago today, the Bureau of Labor Statistics (BLS) released its jobs market report for the month of August. To say the very least, there was nothing in that report that says the labor market in the U.S. economy is back on its feet. In fact, the report painted a gruesome image of employment in this country.

In August, 142,000 jobs were added to the U.S. economy—the lowest monthly … Read More

Where the Gains Will Be in 2014

By | January 6, 2014

New Year to Be Bullish for Stock Market InvestorsIn 2013, the Federal Reserve gave stock market investors some of the easiest gains in history as a result of its quantitative easing. Now, as we move into 2014, while I believe it will likely be another up year for the stock market, I doubt the gains will be as good as last year’s.

Let’s take a look at the situation in 2014.

Fed Chairman Ben Bernanke will be gone … Read More

Hard Proof There Is No Real Economic Recovery

By | June 26, 2013

Economic RecoveryThere’s a lot of talk about economic recovery these days. Mainstream economists are saying the U.S. economy will continue to grow, and the stock advisors are telling investors to buy on dips because everything is headed upward. Their arguments are: housing is hot, the unemployment rate is declining, and consumers are spending.

But I have to disagree with those claims. I believe this isn’t a real economic recovery. What we … Read More

Number of S&P 500 Companies Reporting Negative Guidance a Red Flag

By | June 12, 2013

 Food Stamp Usage RisingStandard & Poor’s, the credit rating agency, believes the likelihood of the U.S. credit rating being downgraded in the near term is less than 33% (one in three) and it has decided to keep its credit rating on the U.S. economy at AA+, slightly lower than the best investment grade. (Source: Standards & Poor’s, June 10, 2013.)

This may be good news to the politicians who continue to believe there … Read More

A Froth Called the Stock Market

By | May 16, 2013

A Froth Called the Stock MarketDidn’t the government say the economy is getting better? Why do I question what they’re saying? Because consumer spending is going the wrong way.

Core retail sales declined 0.1% in April—and that’s after they already fell 0.4% in the previous month! (Source: U.S. Census Bureau, May 13, 2013.)

When compared to the first four months of 2012, consumer spending in the U.S. economy declined in the first four months of … Read More

Central Banks’ Gold Purchases in 2012 Most Since 1964

By | March 27, 2013

Gold Purchases in 2012 Most Since 1964According to the International Monetary Fund (IMF), in February, the central bank of Mongolia increased its gold bullion reserves to its highest level since August of 2008. The country has been purchasing gold bullion for three consecutive months—its reserves have increased from 1.5 metric tons to 5.8 tons, or about 287%. (Source: Bloomberg, March 26, 2013.)

Similarly, the central bank of Russia has been purchasing gold bullion. It bought seven … Read More

Jobs Market Growth? 1,422 Mass Layoffs Took Place in February 2013

By | March 27, 2013

The so-called “recovery” in the jobs market isn’t sustainable. I don’t disagree that there has been job creation in the past few months, but when I look at the spectrum of the jobs created in the U.S. economy, I become skeptical. Jobs growth in the U.S. economy has been in the low-paying retail sector.

Consider this: in February, there were 1,422 mass layoffs in the U.S. economy, involving 135,468 workers. … Read More

Disconnect Between Stock Market and Economy Biggest I’ve Ever Seen

By | March 14, 2013

Disconnect Between Stock Market and EconomyBy looking at the stock market’s recent performance, one might think the U.S. economy has turned the corner and the worst is behind us. This is far from reality! The U.S. economy is fundamentally damaged, and since the financial crisis of 2008–2009, there really hasn’t been any real economic growth.

Even a novice economist will tell you: economic growth happens when general living conditions of citizens in a country improve; … Read More

What the Government Doesn’t Want You to Know About Jobs Creation

By | March 12, 2013

120313_PC_leongThere was some rejoicing last Friday after the U.S. Bureau of Labor Statistics reported 236,000 new jobs and a lower unemployment rate of 7.7% for February. (Source: Bureau of Labor Statistics, March 8, 2013.)

While the job creation number was good, it wasn’t earth-rattling and by no means did it suggest the jobs market is set for a superlative upward move.

You know we still have about 12.3 million Americans … Read More

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