Stalling Job Growth May Spell Trouble for 2013
by Chris Puplava, Financial Sense:
Various indicators I track suggest that we may get a decent pullback in the markets in Q1 2013. While the indicators I look at suggest a correction, they do not shed any light on the catalyst that would precipitate such an event. As I show below, stalling employment growth will most likely be the key.
Two important leading indicators of employment suggest that monthly payroll gains slow to a crawl in Q1 and, if that happens, markets will have reason to worry.
Job Growth Set to Stall Ahead
Currently, there are some positives as the economy recovers from the malaise earlier this summer as leading economic indicators continue to climb along with coincident indicators. For example, the Philadelphia Fed’s State Coincident Indexes for November came out this week which showed 45 of the 50 states showing economic expansions.