August Jobs Report
1. Overall employment fell by 131,000 jobs
2. Jobless rate held at 9.5%
3. The critical component of the report - Private Sector Jobs - increased by 71,000
4. The underemployment rate held at 16.5%
• The Street was expecting private sector job growth of +90,000
• The gains in private sector jobs came from manufacturing, education, and health services
I expect that the capital markets will be disappointed by this morning's U.S. Unemployment report. Safe haven assets such as gold, Treasuries, and the Japanese yen will be favored once again in the near term. The anticipated re-allocation of capital out of Treasuries into equities will be postponed. The conversation will now shift toward monetary and fiscal stimulus. The Baseball Season of Frustration continues.