Comments on: Why do unemployment rates and stock market indexes both go up? http://www.thickenmywallet.com/blog/wp/2009/04/09/why-do-unemployment-rates-and-stock-market-indexes-both-go-up/ Everything to do with thickening your wallet Wed, 01 Feb 2012 15:44:00 +0000 hourly 1 http://wordpress.org/?v=3.3 By: admin http://www.thickenmywallet.com/blog/wp/2009/04/09/why-do-unemployment-rates-and-stock-market-indexes-both-go-up/comment-page-1/#comment-18609 admin Wed, 15 Apr 2009 14:03:08 +0000 http://www.thickenmywallet.com/blog/wp/?p=881#comment-18609 Dividend Growth Investor- it will be interesting to see what happens this time around. In the 1990's, the American economy was more export driven (and the trade imbalances smaller) so it could lay off domestic employees (remember when outsourcing first became popular?) but get the world to consume more. In a global economy, who knows what will happen? Other than the fact the economists will probably get it wrong! Dividend Growth Investor- it will be interesting to see what happens this time around. In the 1990′s, the American economy was more export driven (and the trade imbalances smaller) so it could lay off domestic employees (remember when outsourcing first became popular?) but get the world to consume more. In a global economy, who knows what will happen? Other than the fact the economists will probably get it wrong!

]]> By: Dividend Growth Investor http://www.thickenmywallet.com/blog/wp/2009/04/09/why-do-unemployment-rates-and-stock-market-indexes-both-go-up/comment-page-1/#comment-18605 Dividend Growth Investor Wed, 15 Apr 2009 08:00:07 +0000 http://www.thickenmywallet.com/blog/wp/?p=881#comment-18605 I always found stock markets to have the best predictive values versus economy or economists. In general job cuts are good for the company as it cuts expenses. But typically the effects of these jobs cuts would be felt 2-3 quarters after the event since there are severance benefits that companies pay to the fired workers. But if I were to exercise my critical thinking, more layoffs means less consumers willing to purchase more products, which means less revenues and lower profits, which means more layoffs.. Ouch,my head is spinning now :-) I always found stock markets to have the best predictive values versus economy or economists. In general job cuts are good for the company as it cuts expenses. But typically the effects of these jobs cuts would be felt 2-3 quarters after the event since there are severance benefits that companies pay to the fired workers.

But if I were to exercise my critical thinking, more layoffs means less consumers willing to purchase more products, which means less revenues and lower profits, which means more layoffs.. Ouch,my head is spinning now :-)

]]> By: Baker @ ManVsDebt http://www.thickenmywallet.com/blog/wp/2009/04/09/why-do-unemployment-rates-and-stock-market-indexes-both-go-up/comment-page-1/#comment-18577 Baker @ ManVsDebt Thu, 09 Apr 2009 12:23:56 +0000 http://www.thickenmywallet.com/blog/wp/?p=881#comment-18577 Great job breaking down a confusing trend, so that even people who are inexperienced with the stock market (me) get the message! Great job breaking down a confusing trend, so that even people who are inexperienced with the stock market (me) get the message!

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