Jobbing Markets

With the market hitting records, what could go right?

This market has advanced against a lot of skepticism. China is slowing down, the payroll tax hike will slow consumer spending, the sequester will cut government employment, national politics are dysfunctional, the states are bankrupt—there has been plenty of gloom to go around.

Topping it all has been our stuck-in-the-mud economy. Month in, month out employment has grown by around 170 thousand jobs per month. At this rate, employment will recover to its previous high in a year and a half, and unemployment will get below 6.5% in two and a half years. But our economy won’t get back to its potential for about five.

The unemployed in our country need something. It’s not redistribution or extended benefits, and it’s not a good swift kick in the seat of the pants. It’s a job—something our slow-growth economy isn’t generating enough of. But the market, hitting record levels, somehow thinks we’ll get there. I sure hope it’s right.

Douglas R. Tengdin, CFA

Chief Investment Officer

Hit reply if you have any questions—I read them all!

By | 2013-05-06T10:01:39+00:00 May 6th, 2013|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. –
Leave a comment if you have any questions—I read them all!
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