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03-10-2006, 08:48 AM
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#1
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Recycles dryer sheets
Join Date: Sep 2005
Posts: 97
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Wage growth
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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.
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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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03-10-2006, 09:10 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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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.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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03-10-2006, 09:20 AM
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#3
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Recycles dryer sheets
Join Date: Sep 2005
Posts: 97
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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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03-10-2006, 09:31 AM
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#4
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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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?* *
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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.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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03-11-2006, 12:57 PM
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#5
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2005
Posts: 5,381
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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".
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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."
__________________
Retired early, traveling perpetually.
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03-11-2006, 01:16 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Dec 2004
Location: Minneapolis
Posts: 4,455
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Re: Wage growth
From the article
Quote:
Average wages rose just 0.3 percent, ...
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I thought my 3% raise was bad.
__________________
May we live in peace and harmony and be free from all human sufferings.
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03-11-2006, 01:26 PM
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#7
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2003
Location: Losing my whump
Posts: 22,708
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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."
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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.
__________________
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.
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03-11-2006, 02:02 PM
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#8
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Moderator Emeritus
Join Date: Dec 2002
Location: Oahu
Posts: 26,860
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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.
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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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Co-author (with my daughter) of “Raising Your Money-Savvy Family For Next Generation Financial Independence.”
Author of the book written on E-R.org: "The Military Guide to Financial Independence and Retirement."
I don't spend much time here— please send a PM.
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03-11-2006, 02:28 PM
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#9
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Full time employment: Posting here.
Join Date: Feb 2006
Posts: 784
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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...
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We feel that a strong 1999Q4 indicates the likelihood of a rebound in share price in early 1900.
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03-11-2006, 10:59 PM
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#10
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Thinks s/he gets paid by the post
Join Date: Jan 2004
Posts: 1,502
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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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Got retiree health care through your company? What if the company goes bankrupt? Retire and go RVing full time? RVs are not structurally sound. You'll die in a fiery crash. Retire and live overseas? What if you die? Aren't you worried about your body? No, I don't think I will be able to seeing how I am dead.
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