The Department of Labor says the US economy added 227,000 jobs in the first month of 2017. Private sector added 237,000 jobs and government shed 10,000 jobs. Unemployment rate stands at 4.8%. Wages grew 2.2% over the last 12 months.
Worker productivity remains well below average. Output per man hour, or productivity, posted a 1% year-over-year increase in Q4 of 2016, but is still well below the pre-Great Recession pace of 2.5-3.0% seen in the 10 years prior to 2007. Slow productivity growth combined with a slow growing labor force keeps the lid on the maximum pace of gross domestic product growth. (LPL Research)
Should you root for the Patriots? The Super Bowl Indicator claims that the stock market does better for the year if an original team from the NFL (NFC) wins versus a team from the AFC. When the NFC wins, the markets have been up 10.9% versus up only 4.3% if the AFC wins. Taking it a step further, when the Patriots have been in the Super Bowl (eight previous times), the full year gain has been only 0.3% with the return actually worse after they won. (LPL Research)
Join us this weekend for Financial Focus Radio when we will talk about the importance of diversification in your wealth building efforts.
With Northwest Quadrant Wealth Management, a Registered Investment Advisor I am Troy Reinhart.