The reason Lombardi is not cheering with the rest of the media at the new jobs number is that he believes they are looking at the wrong job number.
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New York, NY (PRWEB) February 16, 2012
The Bureau of Labor Statistics reported that the U.S. created 243,000 jobs in January 2012, causing the unemployment rate to fall to a level not seen since February 2009: 8.3%. According to Michael Lombardi, lead contributor to popular financial newsletter Profit Confidential, the drop in the unemployment rate was aided significantly by the fact that many Americans have simply given up looking for work.
“Those who have stopped looking for work are removed from the job numbers,” says Lombardi.
Lombardi points out that U6, as reported by the Bureau of Labor Statistics, is a broader measure of the unemployment rate because it takes into account discouraged people as well as those working part-time who want full-time work.
“The U6, also more commonly known as the underemployment rate, stands at 15.1%, about the same as December,” says Lombardi.
The reason Lombardi is not cheering with the rest of the media at the new jobs number is that he believes they are looking at the wrong job number. Lombardi points out that if you added back the people that have given up looking for work in America and the people who want full-time jobs, the underemployment rate really didn’t change in January.
“The government is still spending like mad; the Fed has said it will keep interest rates at zero until the end of 2014, and we still can’t create real jobs,” says Lombardi.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.