Unemployment Rises Less Than Expected

Ah, the world of finance, where the rules are made up, and the points don’t matter.

OK, I stole that from Phineas and Ferb, but sometimes it fits better than it does even for a fake game show.

Today, unemployment numbers were released in which the number of Americans filing for unemployment increased. That means more Americans are jobless than before, despite the so-called worker shortage and the Great Resignation. Don’t forget, you don’t get to file for unemployment when you quit, so these are still Americans who were fired, downsized, let go, or their employer closed. More unemployed Americans is bad, in general, but…

Economists were predicting (modeling, similar to what meteorologists do) that there would be even more Americans filing for unemployment, so the fact that more Americans are unemployed, but not as bad as we thought, is good news. Kind of.

Check out my review of the new fintech investing apps.

The reality is that numerous traders and investors made their trades expecting higher unemployment numbers would push down the price of securities and investments. Since they were wrong, the price of those investments are rebounding. This is “good news” in the world of finance, and a beautiful example of why short-term investing is like gambling.

As always, the best way to invest for the long-term is with a well-diversified portfolio tailored to your risk tolerance that you rebalance on a schedule without ever taking into account the movements of the stock market.

Unemployment Rises Less Than Expected 1

US Labor Department Unemployment Numbers

Author – Brian Nelson

By Brian Nelson – Brian is a former Certified Financial Planner and financial advisor. He writes for the Finance Gourmet and other financial publications. The material provided on this website is for informational use only and is not intended for financial or investment advice. At the time of publication, Mr. Nelson did not own any securities mentioned above, however, that may change at any time without notice. ArcticLlama, LLC, FinanceGourmet.com, and Brian Nelson, assume no liability for any loss or damage resulting from one’s reliance on the material provided. Please also note that such material is not updated regularly and that some of the information may not therefore be current. Consult with your own financial professional when making decisions regarding your financial or investment options.

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