Caution - Is A Lagging indicator for Stock Markets

  • Some will actually claim that stock markets are a leading indicator for BLS job reports
  • Example:  2000 Recession
    • 467,000 new jobs were reported in March 2000
    • 6 month prior average gain was 306,000 per month
    • The Nasdaq dropped 33% in April 2000
    • Nasdaq dropped 50% within 18 months
    • US economy was in recession within 1 year