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Job Openings & Stocks Decouple

Matthew Allgood |

 

 

 

A black background with red text Description automatically generatedThe relationship between job openings and the stock market has historically been strong, with both moving in tandem as indicators of economic health. However, recent data show a notable divergence—job openings have been falling while the S&P 500 continues to climb. This suggests that while economic fundamentals may be softening, the stock market is behaving differently, perhaps driven by other factors such as corporate earnings, investor sentiment, or expectations of lower interest rates. 

 

This serves as a reminder that even if you have insight into economic trends, markets can react in unexpected ways. It's crucial to remain diversified as market behavior can often defy predictions.

 

Job Openings & Stocks Decouple

 

A graph showing the growth of the company's stock market Description automatically generated

 

Source: Bloomberg, Redwood. Data as of 10/04/2024. Date Range from 9/24/2001 – 10/4/2024.

 

 

Regards,

Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions of Redwood that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss. Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. Diversification of asset class is not a guarantee against loss.

 

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