Stock Market: "Now, Let Me Get This Straight…"

Stock Market: "Now, Let Me Get This Straight…" by Bob Johnson, PhD, CFA®, CAIA®, President & CEO, The American College

“What a strange world we live in...Said Alice to the Queen of hearts” - Lewis Carroll, Alice in Wonderland

U.S. stock markets fell around 1 ½ percent on Friday following a much better than expected jobs report. Employers added 295,000 jobs when only 235,000 new jobs were expected. Try explaining that to an undergraduate business student who has been told that the stock market is a reflection of the strengths or weaknesses of the underlying businesses comprising the index. Or, try explaining that to a client who just saw his portfolio decline in value.

If more people are working shouldn’t...