Jobs are being added to the U.S. economy at a healthy enough rate to stave off fears that the U.S. is headed for a recession. This is good news for those that are still bullish when it comes to the U.S. market, and for those that want to be bullish, too. For the month of January, 151,000 new payroll jobs were added to the economy, and while that’s not the same pace that the previous month had seen, it also needs to be noted that 2015 was one of the best years in recent history for job growth. Over the last 15 years, 2015 had the second highest number of jobs added of any other year. So, even though this number is smaller, perspective is needed to get a feel of what’s going on.
The unemployment rate has also continued to drop. It currently stands at 4.9 percent, down 0.1 percent from the month before. Even this is impressive. Three years ago at this time, the unemployment rate stood at over 7.5 percent. Seeing this drop even further after the sizeable gains that have already been made does a lot more to soothe those who believe a recession is near.
Putting this into an even better perspective, this is the first time that the unemployment rate has been under 5 percent since February 2008, just a couple months before the collapse of Bear Stearns led to the financial crisis. This has taken years to recover from, but it is encouraging to know that this level of strength has once again been obtained. Wages are also going up, adding an extra element of support to the data. These are up about 2.5 percent over the last year.
This doesn’t mean that a recession is not coming. It might happen, but it doesn’t look like it’s started yet. A lot more negative action needs to happen in the major markets, and stocks currently have too much traction to allow this to happen. Still, having a backup plan just in case is a must if you want to have a higher chance of turning profits. Being able to make money in dropping markets is a key trait, especially when everyone around you is losing money. You can do this in a number of ways, and each has its merits, so it really depends on what works best for you. Many traders prefer binary options because of the low cost of making money on falling profits compared to selling a stock short traditionally, but this isn’t the only way. You can also look for those rare diamonds that keep gaining value during bad markets, switch to the Forex market, or a number of other choices. It’s all about knowing your needs as a trader and capitalizing on them.
Having a general perception of where the market is going is the most important thing here. Being able to profit off of market direction is the next step. Both are necessary for you to be successful. While other traders are backing off, or just fighting to stay more profitable than the indices, you can keep making money, and not worry about this when you have the right knowledge and the right tools to use that knowledge. And right now, the recession is not a reality. Now you need to take that knowledge to the next level and create positions that make money based upon it. This is just the basic fundamental information that you need to make decisions, the technical data will need to be filled for each specific trade on a case by case basis.