10 Mar The Waves Are Starting To Crash
During the month of February alone the U.S. job economy added 242,000 jobs. This is definitely not a bad sign by nature. However this is not a sign of exponential growth by any means. With the unemployment rate floating steadily at 4.9% the U.S. economy is creating jobs just quickly enough to keep itself healthy; however, the quality of those jobs is not necessarily what many would have in mind. In fact nearly half of those jobs are going into the lowest paying wage bucket. In fact these numbers are not exactly as accurate as they seem, if you add into the equation the birth/ death adjustment in America, there were actually only about 129,000 jobs created last month.
Aside from the job market, factory orders are up in the U.S. by 1.6% in January alone. The increased orders for capital goods and products outpaced the drop in mining and manufacturing, which has something to say for the weakness in the energy field. Although this pop of demand for capital goods went a long way when it comes to the drop in the month of December, that isn’t much to say for the preliminary numbers reported for February, as well as the rest of the signs that have been so abundant in recent weeks. The good news is that capital goods were up in the month of January, the bad news is that we don’t know how long this will last if it does at all.
Although many domestic problems are easy to see as they approach us, many foreign problems fail to show any signs for weeks at a time. The commodity bust in China is starting to show its signs. Australian building permits fall 7.5% in January, reversing the 8.6% gains that were seen in December. Considering the expected decline was 2.0%, this isn’t necessarily a good sign, especially when permits fell 15.5% over the same period last year. The Australian housing market is not doing so well by any means, condos alone are down 26.7%. What we can take away from this is that Chinas commodity market collapse is starting to hit the weaker markets internationally; the real question to be asked is when will this wave hit American shores?
The global market itself is not in its best shape, in fact some might argue to say that it is in its worst shape. With the domestic economy constantly in question and the foreign economy slowly experiencing the wave of the Chinese market, now is the best time to make the best decisions with your money. Call Ortiz World Wealth your registered investment advisor representative today to make sure you are making the best decisions with your money.
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