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Wage growth
Old 03-10-2006, 09:48 AM   #1
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Wage growth

----

From:
http://abcnews.go.com/Business/wireStory?id=1709489

The report was well balanced in addressing Wall Street's overarching concerns of late. The job growth points to continued economic growth, while the modest wage gains and slightly higher unemployment rate mollified fears of more workers creating higher demand for goods and possibly sparking inflation.

----


I remember some post by Brewer I think that mentioned if wage growth doesn't pick up, then the economy is in trouble.

I may be misquoting or oversimplifying, but this article seems to say that slow wage growth is good.

I still try to get it through my head:
too much = bad
too little = bad
just right = good

But it's hard to know what "just right" is.

Oh well, I won't lose any sleep over it, but it makes reading financial articles a little challenging for me when I don't know what's "good news" and what's "bad news".

It seems that no matter what happens, investors aren't happy.

"Unemployment is high, we're in a recession!"
"The job market has picked back up, we're going to have high inflation!"


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Re: Wage growth
Old 03-10-2006, 10:10 AM   #2
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Re: Wage growth

The trick is that the market doesn't like the dizzying heights or the terrifying lows, only the creamy middles.
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Re: Wage growth
Old 03-10-2006, 10:20 AM   #3
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Re: Wage growth

So you won't find many investors riding roller coasters at the amusement park?
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Re: Wage growth
Old 03-10-2006, 10:31 AM   #4
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Re: Wage growth

Quote:
Originally Posted by just_hatched
So you won't find many investors riding roller coasters at the amusement park?* *
Hmmm, you probably will, given the popularity of some VERY volatile individual equities, derivatives, etc. But the market as a whole, as in the indexes, and the people who stick to them? Nope. Just the carousel.
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Re: Wage growth
Old 03-11-2006, 01:57 PM   #5
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Re: Wage growth

Quote:
Originally Posted by just_hatched
Oh well, I won't lose any sleep over it, but it makes reading financial articles a little challenging for me when I don't know what's "good news" and what's "bad news".
Most of the financial "news" that is dissected hourly and spun to mean this or that is nothing more than noise. The sages of the financial press are charged with finding meaning in every twitter of the market. As in . . . "The stock market ended higher today on the back of strong employment and earnings statistics signaling a strengthening of the economy." Conversely, "The stock market ended lower today as investors feared rising interest rates following strong employment and earnings statistics."

On most days they don't have a clue as to why the market moved this way or that. It would be more accurate, although seemingly less insightful, if they simply said "Stocks declined today on fears that stocks would decline."
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Re: Wage growth
Old 03-11-2006, 02:16 PM   #6
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Re: Wage growth

From the article
Quote:
Average wages rose just 0.3 percent, ...
I thought my 3% raise was bad.
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Re: Wage growth
Old 03-11-2006, 02:26 PM   #7
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Re: Wage growth

Quote:
Originally Posted by 3 Yrs to Go
On most days they don't have a clue as to why the market moved this way or that. It would be more accurate, although seemingly less insightful, if they simply said "Stocks declined today on fears that stocks would decline."
Indeed...some examples of my old companys stock...

Blowout quarter, well above analyst estimates, stock goes up "Today xyz shares rose on record profits"
Same thing, stock goes down "Today xyz shares fell on analyst fears that the next quarters will suffer
Same thing, stock goes up, analysts drop ratings "Analysts lowered expectations today fearing a lack of adequate guidance from xyz in the face of rising shares
Quarter that was just below estimates, stock goes up "Today xyz shares rose despite a shortfall in results, with expectations that some significant business has slipped into the next few quarters"
Same thing, stock goes down, "investors punished xyz corp by selling off shares due to quarterly shortfall".

I'm of the impression that they just have a bag of quotes, and find one that fits appropriately. Its quite clear that the results, the business, forecasts, and analyst projections are nearly meaningless.
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Re: Wage growth
Old 03-11-2006, 03:02 PM   #8
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Re: Wage growth

Quote:
Originally Posted by Cute 'n Fuzzy Bunny
I'm of the impression that they just have a bag of quotes, and find one that fits appropriately.
I don't think they put that much work into it. I suspect there's just a random-number generator, programmed in 1995, that picks a quote and spits out a press release...
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Re: Wage growth
Old 03-11-2006, 03:28 PM   #9
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Re: Wage growth

Quote:
Originally Posted by Nords
I don't think they put that much work into it. I suspect there's just a random-number generator, programmed in 1995, that picks a quote and spits out a press release...
We feel that a strong 1999Q4 indicates the likelihood of a rebound in share price in early 1900.
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Re: Wage growth
Old 03-11-2006, 11:59 PM   #10
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Re: Wage growth

Wage growth? What wage growth? My CEO got a 5% raise in the second of a two-year losing streak. We peons get two years of 0% followed by a 1% raise.
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