If you haven’t heard, there has been some good news regarding our economy recently.
The Jobs Report
The Bureau of Labor Statistics reported that the U.S economy added 528,000 jobs in July, doubling the consensus expectation of 258,000. Also, the unemployment rate ticked to the pre-pandemic level, falling from 3.6% to 3.5%, which is tied to the lowest rate since 1969. Coincident with this job creation was strong wage growth, as average hourly earnings rose 0.5% in July and 5.2% from a year ago. This strong report provides more evidence that the U.S. economy is not currently in recession.
The Price of Gas Drops
More good news was that for the first time since March, the price of gas dropped below $4 a gallon. According to AAA, the national average price of gas per gallon dropped to $3.99. Considering that this average was a little over $5 in June, this price drop is rather significant and a welcome sight to many consumers at the pump.
The Market Moves from Bearish Towards Bullish
Last week the optimism in the market rose to its highest level since March and pessimism fell to its lowest level in almost five months. The bearish sentiments decreased to 36.7%, which is a significant drop from nearly 60% in April. Although the sentiments in the market still appear to be slightly bearish, the bullish and bearish sentiments, along with the spread between the two are currently within their typical range.
What It All Means for You
If the economy continues to show signs of strengthening, your account stands to benefit, because a strong economy tends to bring a strong return. After a bit of a rough start to the summer, it is good to see signs of the economy making strides forward. While we don’t have a crystal ball to determine where the future will take us, we are always happy to see and report things that benefit our clients. Regardless, we will always use every tool available to help our clients pursue their financial goals.
If any of these recent events cause you to have questions about your account, feel free to reach out to our office.
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual.