Jobless claims continue their slow grind lower. The latest reading of 432K was substantially better than the expectations of 460K. Claims have made a dramatic improvement from their April peak of 658K. Perhaps most important is the vast improvement in continuing claims. Continuing claims came in at 4.98MM this week versus their cycle high of 6.77MM earlier this year. All of this points to jobs gains in 2010. Next week’s jobs report is currently pointing to a flat jobs report, but this data is almost certain to turn into jobs gains by early next year. The tepid pace of gains is a clear sign of the weak recovery, but a recovery no less.
Mr. Roche is the Founder and Chief Investment Officer of Discipline Funds.Discipline Funds is a low fee financial advisory firm with a focus on helping people be more disciplined with their finances.
He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance, Understanding the Modern Monetary System and Understanding Modern Portfolio Construction.