How to Invest in a Jobs Recovery

It feels odd to present a stock idea based on a domestic jobs recovery when we hear daily accounts of baby boomers burning through their retirement savings due to job loss, underemployed college grads barely meeting their student loan obligations, and politicians spewing the boilerplate line, "We must create jobs in America." And let's not forget the economists who have fallen in love with the term "muddle through" when describing economic output potential in 2012. It feels as if we never exited the Great Recession. I can't tell you how many empty storefronts and boarded up homes I see in any given week.

Yet, the weekly macro data suggests something positive has begun to happen in the jobs market, and investors have to accept it or risk buying associated stocks 20% higher than present levels. For a good part of December, I sensed heightened anticipation for jobless claims data. Why? The numbers are finally starting to improve and come in below expectations. Marry this with favorable readings on the ISM employment components, and suddenly we have a December nonfarm payrolls report that could print 200,000 on the headline....415 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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