Monday, July 14, 2008

Don't Fret Month To Month

If I reacted to everything that was reported in the news I would be a nervous wreck. Sensation sells and if we were told, "Oh don't worry about it - markets have blips all the time..." then no one would be a newspaper or read the news.

On that note Canada lost 6,000 jobs in June:

"We wouldn’t make too much of a one-month dip in employment --- that can happen even in the middle of a boom. However, the jobless rate continues to gradually grind higher --- now up 0.4 percentage points since its three-decade low at the start of the year --- while full-time employment growth is clearly fading. The slow slackening in the labour market may start to take some of the steam out of wages, which would be a moderate relief to the Bank of Canada’s inflation concerns. The Bank was anticipating slow growth this year, and these figures are hardly shockingly weak, so it won’t do much to alter their bigger view." Douglas Porter, BMO Capital Markets

I chose this one specifically because he stressed that one month is irrelevant in the big picture. To read more takes on the same subject from all the major bank's analysts in Canada CLICK HERE.

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