Well the unemployment rate in the United States has been released. It is currently at 8.1% which is the highest since 1983. What exactly does this mean for the future of the stock market? Absolutely nothing. (To see some more specific unemployment stats, check out http://www.talkgold.com/forum/r251143-.html)
Unemployment is considered a "lagging indicator" which means it follows the economic trends. If the economy is doing bad, unemployment will usually go down. It is an indicator of the economy that lags behind. So in reality, the unemployment rate could be going up as the economy becomes bullish.
The latest news that the unemployment rate is over 8% nationwide should have no influence whatsoever on whether you buy or sell your stocks. In my next entry I will discuss leading and lagging indicators, to see if we can predict when the economy is about to turn up.
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