Monday, May 18, 2009

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.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.