Wall Stream

Job figures in the United States are looking resoundingly better as 2011 kicks off, with claims filed for unemployment steadily declining to close out 2010. More and more people are actually putting money in their pockets, hard earned money at work as opposed to quick earned money via investments, which raises the question can the two co-exist?Traditionally booming employment figures have had an adverse effect on stock market numbers. Yes, this blatantly argues against the notion that economic prosperity manifests itself all members of society gainfully employed and doing well. As far as investors and investments are concerned, times of rapidly rising employment are potentially dangerous because a heightened possibility the Federal Reserve will raise interest rates as a safeguard against inflation rates. Ultimately, an accelerating economy, as evidenced by higher than projected employment figures, results in higher inflation, with the Federal Reserve‘s objective to preserve the value of the dollar. For investors, this represents a lessening chance of potential gains. (more…)