Today we'll take a close look at the November employment report last Friday, which was a positive surprise. The 321,000 new jobs added last month was the highest reading since January 2012 and was substantially above the pre-report consensus of 230,000. The headline unemployment rate remained at 5.8%. The question is, will such job growth continue, or was this a one-month, seasonal anomaly?
Yet not all of the news in the November jobs report was positive. While the headline new jobs number was 321,000, a deeper dive into the data reveals that there were only 4,000 more Americans working in November than in October (details to follow). Full-time jobs declined by 150,000, while lower-paying part-time positions increased by 77,000 – that’s not good.
President Obama praised the jobs report and suggested that the economy is nearing full employment. The truth is, the economy is still far from full employment. The unemployment rate would have to fall to 5% or lower for that to happen, and it is not expected to do so anytime soon.
And speaking of the president, rumors are swirling in Washington that Obama is seriously considering new sanctions against Israel, our strongest ally in the Middle East. The Obama administration is opposed to Israel’s decision to build new homes in East Jerusalem, and that this construction“undermines the peace process.” Now, apparently, they are considering sanctions against Israel. That is preposterous!
Finally, our recent live webinar with Wellesley Investment Advisors is now available for viewing on our website. Wellesley invests exclusively in convertible bonds and is the only convertible manager we recommend. Whether you are knowledgeable about convertible bonds or not, I highly recommend that you watch this presentation.