Stock Returns and Employment

From 1947 through 2007, the nations’ unemployment rate was under 6% about two-thirds of the time, and over 6% the other one-third of the time.
For the time the rate was under 6%, the stock showed an annualized real return of 3.7%. When the rate was over 6%, the real return jumped to 17.3%.
The moral of the story is one I’m sure you already knew: Rotten times are great times to invest.

Posted by on May 15th, 2009 at 1:32 pm


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