Fellow Investor,
Please—what ever you do—don’t be fooled by the labor department’s
unemployment numbers
As the Wall Street Journal spelled out so clearly, all is not over—
not by a long shot.
Truth is, the labor department numbers aren’t giving you the full picture
here.
While the report shows, “The July household survey showed the civilian
labor force shrinking by 422,000 and employment falling 155,000,”
and that translating into “267,000 fewer people listed as unemployed,”
here’s what they’re not telling you.
Wall Street Journal says it best, “People who decided to return to school
during the downturn, for instance, would eventually return to the job search
and help push the unemployment rate higher.”
Do you realize what this means?
All of those people who have lost their jobs will ultimately return to the market
to look for job. When the households are surveyed—and not the employers
—there’s a good chance you’ll see the unemployment numbers spike again.
The number of lost jobs that will never return will shock Wall Street again
and today’s big gains could quickly blindside investors who have hopped on the today’s bandwagon.
What the Government Isn’t Telling You About Rising Unemployment Could Make You a Small Fortune
If you think job losses across the country are slowing down,
I have a nice bridge I’d like to sell you.
Truth is, the government’s figures for last month don’t tell you the full story
…but the government has now admitted they made mistakes!
Vice President Biden admitted as much on Meet the Press last month.
But what Biden didn’t say—and wouldn’t—is how many of these jobs
will be lost when thousands of car dealers across the country close for good!
Nor did he mention how state and local government layoffs would be lost
for good, as well, as local governments cut jobs to balance their budgets.
When those lost jobs make the economic reports, mark my words,
the spike in unemployment will make July's drop in in unemployment
from 9.5% to 9.4% look like the anomaly that it is.
You see, what today's report fails to factor in is this:
The big layoffs at major automakers, suppliers and dealers are just one
of the latest signs that the recession is still hitting the U.S. economy at
full force.
And it’s only a matter of time before the associated decline in consumer
spending drops further along with corporate earnings.
When that happens there is only one thing you can be sure of:
You do not want to be long on U.S. stocks when investors figure
out that the recession is far from over…in fact, it’s still just getting
started!
As you’ll see in the government’s July report, the biggest job losses will
come in the auto service industry, where experts estimate the loss of 1
50,000 dealership and service jobs that WILL NEVER COME BACK.
The Shocking Truth About the Obama Stimulus Plan
The untold story is that Obama’s stimulus plan has crushed the dollar,
increased interest rates and triggered another bold new energy run.
The result will …
1.Slow the U.S. economy
2.Increase U.S. unemployment, AND
3.Crush U.S. manufacturing jobs as it creates new opportunities in China.
All at a time when China is moving at light speed to boost its internal
growth rate.
Most investors don’t realize this, but China’s growth will hit a
mind-boggling 7% in 2009.
To be sure, that’s less than the sizzling hot years of 11% annual growth,
but compared with the expected U.S. contraction of negative 3% in 2009,
you don’t have to be a computer scientist to know where the big money
will be made in the next two years.
Profit from China’s Love for Cell Phones and All Things Wireless:
Make no mistake about it, China leads the world in telecom growth.
By 2010, half of the world’s 1 billion global subscribers will be located in
China.
Big winners to date include:
- Aluminum Corp of China, +181%
-
China Southern Airlines, +170%
- New Oriental Education, +206%
- Yingli Green Energy, +125%
- Apple, +118%
- SPDR Gold, +65%
- Sinopec, +58%
-
Las Vegas Sands, +52%
Now with China’s second wave set to deliver even greater growth,
even these great gains could look like a drop in the bucket.
China will continue to grow at 7.9% in 2009…
- Despite growing U.S. unemployment
- Despite rising energy prices
- Despite the demise in the U.S. housing market
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