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Midweek Report: Employment Numbers Continue Ugly Trend

Midweek Report: Employment Numbers Continue Ugly Trend

May 07, 2020

More bad news on the employment front did not hamper continued incremental advancement by investment markets. Most would scratch their heads on how markets could interpret depression-like employment figures to positive outcomes for securities. It can be hard to remember that markets are attempting to distill where the economy is going--not where it is today. Perhaps the figures were "not as bad" as what asset prices currently have "priced in." Time will tell.

My reading for the week:

5 ways the world could change: An investor watchlist -- BlackRock Blog

  • Beyond BlackRock's weekly market update, the article looks at how COVID-19 may impact our world going forward.  These include:
    • Technology's impact on a low-touch society
    • Global vs. Local debate
    • How we think of a business's financial health
    • An acceleration of focus on a company's social governance & environmental record
    • Easing back into travel & leisure
  • A video summary is also posted here:

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Navigating a new landscape for dividends -- Capital Ideas

  • For income investors, stock dividends remain an important piece of the puzzle. The article looks at dividend sustainability coming out of the crisis.
  • Dividend-paying stocks face pressure on many fronts today.
  • Fundamental research and diversification are the keys to investing in income-oriented companies.
  • Given ultralow interest rates, dividend payouts remain a crucial source of investment income.