• About WordPress
    • WordPress.org
    • Documentation
    • Learn WordPress
    • Support
    • Feedback
  • Log In
  • Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Home
  • Contact us
  • Related Sites
    • InflationData.com
    • Financial Trend Forecaster
    • Your Family Finances
    • Elliott Wave University
    • Optio Money
  • About
    • Terms of Use
    • Disclaimer & Disclosure
    • Privacy Statement
  • Sitemap
    • 2009-2010 Posts
    • 2011 Posts

UnemploymentData.com

Your Source for Employment and Unemployment Data

Unemployment
  • Charts
    • Current Unemployment Rate Chart
    • Current Employment Rate (Chart and Data)
    • Current Employment vs Unemployment Chart
    • Historical Employment Data
    • Employment Population Ratio
    • Misery Index
  • Unemployment
    • Historical Unemployment Rate Tables
    • What Is U-6 Unemployment?
    • Unadjusted vs. Seasonally Adjusted U-3 Unemployment Rate
    • BLS vs. Gallup Unemployment Numbers
    • Current U-6 Unemployment Rate
    • What is the Labor Force Participation Rate?
    • What is the Real Unemployment Rate?
  • Employment
    • Current Employment Rate (Chart and Data)
    • Historical Employment Data
    • Contacting a Live Person at the State Employment Commission
      • How to Talk to a Live Person at the Virginia Unemployment Commission
      • Florida’s FLUID Unemployment Program
    • Benefits
      • Insurance
      • Retirement
    • Careers
    • Employment Costs
    • Experience
    • Government
    • Job Hunting
      • Interview
      • Resume
  • Find Articles
  • Education
    • Skills
  • General
    • Small Business
      • Outsourcing
    • Success
You are here: Home / Employment / Here’s Why “Strong Jobs” Don’t Mean “Higher Stocks”

Here’s Why “Strong Jobs” Don’t Mean “Higher Stocks”

October 9, 2018 by Elliott Wave International

The stock market leads the economy, not the other way around

By Elliott Wave International

Jobs vs StocksIt’s a wonderful thing when jobs are added to the U.S. economy.

But, as far as investing goes, history shows that you should not bet your stock market portfolio on it. Conversely, even a series of weak jobs reports doesn’t mean you should bet against stocks.

This is worth mentioning because many pundits believe big economic factors like jobs determine the stock market’s trend.

Consider this from CNN Money:

Solid corporate earnings coupled with continued demand for new technology bode well for the major U.S. stock indexes. So do expectations of a buoyant economy at home and a recovering one overseas. [emphasis added]

When do you think this article was published?

Well, it’s hard to tell because the narrative could fit different timeframes in recent history. Plus, correlating strong earnings and the economy with gains in stocks is all too common.

That article was published on Dec. 31, 1999 — just two weeks before the DJIA hit a milestone high and then went on to shed nearly 40% of its value through October 2002.

We saw a similar narrative near the 2007 peak. By the time June 2007 rolled around, the Elliott Wave Financial Forecast noted:

Just as advocacy of the New Economy blossomed in early 2000, a wide array of rosy long-term scenarios are now proclaiming “a special time in market history.” “This group of extreme optimists believes that global economic strength will keep shares rising for much longer than has been common in previous eras.” [emphasis added]

Again, the DJIA topped soon after and went into the worse bear market since the Great Depression.

Now, let’s look at what happened when job numbers were weak. On Feb. 6, 2009, a headline said (Center for American Progress):

Job Losses Continue at Accelerated Pace

Wouldn’t you know it — just a month later, the stock market bottomed and went on to quadruple through January 2018. So much for the shrinking U.S. economy in 2009 and the unemployment that hit 10% in October of that year.

Even this brief overview of recent market tops and bottoms makes clear that jobs and the economy FOLLOW the stock market, not lead it.

The belief that jobs reports lead the market is just one myth.

Learn about others in our special, free report, “Market Myths Exposed.”

Did you know that the vast majority of portfolios are built on false assumptions? These false assumptions — or Market Myths — have been passed down across generations. They are so baked into investor psyche that no one ever thinks to challenge them… but we do. Do earnings really drive stock prices? Can the FDIC actually protect you? Is portfolio diversification a smart move? Download Market Myths Exposed now and find out whether your portfolio is built on flawed foundations. We guarantee you’ll be shocked to find the truth.

Sign up now and get FREE access to The Market Myths Exposed eBook.

This article was syndicated by Elliott Wave International and was originally published under the headline Here’s Why “Strong Jobs” Don’t Mean “Higher Stocks”. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.

Filed Under: Employment Tagged With: economy, jobs, Stocks

Primary Sidebar

Search Site

Sponsored:

URGENT: These Stocks Stand Poised to Benefit from President Trump's Trade Wars!

As the Trump administration moves ahead with aggressive tariff policies on key imports, the mainstream media is scrambling.

This Free Report - which you can download now - reveals the names and ticker symbols of 5 Stock Poised to Benefit Most from President Trump's Tariff Wars.

Click Here to Download Your FREE Stock Report Now.

Recent Posts

  • April 2025 Employment / Unemployment Report
  • Would More Jobs Help Social Security?
  • March 2025- Employment / Unemployment Report
  • February 2025 Jobs Report
  • January 2025 BLS Employment Report

Resources

  • Bureau of Labor Statistics Current Population Survey Monthly survey of households conducted by the Bureau of Census for BLS. It provides data on the labor force, employment, unemployment, etc.
  • Capital Professional Services Providing web design and development and Internet marketing services
  • Elliott Wave University Using the Elliott Wave Principle to improve investment performance
  • Financial Trend Forecaster Featuring Moore Inflation Predictor, NYSE Rate of Change and NASDAQ Rate of change
  • InflationData.com Inflation calculators, databases, etc.
  • Intergalactic Web Designers Web design and development services
  • Your Family Finances

Articles by Category

Articles by Date

Disclaimer

At UnemploymentData.com we are not registered investment advisors and do not provide any individualized advice. Past performance is not necessarily indicative of future performance and future accuracy and profitable results cannot be guaranteed.

Privacy & Terms of Use

Privacy Statement & Terms of Use

Do Not Sell My Information

Copyright © 2025 · News Pro on Capital Professional Services, LLC. All rights reserved · Log in