by Today’s Economic Influencers and How the Economy is Reflected
Although many variables may influence the economy, this article will only discuss a number of them that were mentioned in the news this past week. Specifically, the variables included in this article contain unemployment rates, consumer spending, and investor spending. Learn about the most recent updates in the world of economics and become involved in helping make conclusions for the club’s benefit.
AP News: Survey from Businesses
According to a recent article, there was roughly an increase in 195,000 jobs in the U.S. With these new employees receiving a (somewhat) steady income their households are able to spend more in the world, which is one of the most significant economic influencers. ADP, a private hiring company, reported these numbers. Economists expect the government to officially release a new jobs report within this week, which are expected to be around 160,000 new jobs, 35,000 short of ADP’s estimates.
The Good News: Businesses are still interested in hiring amongst a trade tar with the Trump Administration against China. Typically, during times of turmoil, businesses would be hesitant to keep growing, but now that there are more opportunities for employment, the economy still has potential to grow.
The Bad News: Not that much! Nearly every sector showed growth in jobs, which supports consumer spending and overall economic support.
MarketWatch: Consumer Spending is Continuing to Carry
As mentioned in last week’s Macro Article, retail sales have been higher than they ever have been in 4 1/2 years. With a decline in many other areas of economic determinants, consumer spending is what is holding the economy together. Although global commerce is residing due to the current trade wars with China, domestic business is outperforming the rest and satisfying nervous investors. All of this being said, be sure to keep buying your clothes from Target and Kohl’s and invest in the markets!
Reuters: Tariffs Causing Investor Uncertainty
Last week, the U.S. imposed new tariffs on China, and China returned the selfless favor soon after. With all of this turmoil in the international markets, investors are less likely to invest in securities that have the slightest amount of risk, which mostly involves investing in the stock market. Many publicly traded companies faced deep drops in the last week, which is always a reason to discourage investors from continuing to lend their money to such companies.
How do these factors influence LAM’s Portfolio?
Taking all of these latest articles into consideration, it’s challenging to maintain faith in the economy. Recessional hints are popping up left and right, which should worry investors, but there seem to be more positive factors that outweigh the rest. In my personal opinion, I believe that LAM should continue to perform research in low-risk investments since there surely is a recession brewing in the distance.
If you are at all interested in becoming a Junior Analyst in any sector, please apply here. This will give you many opportunities to help out the club research for investments in the portfolio. All levels of experience are welcome, so do not be afraid to apply. You will have to submit a resume’ along with your application, and you will go through an interview with your prospective Director(s). If there are any questions about the position, please do not hesitate to reach out to any of the club’s Board Members!