, Columnist
Going Beyond Jobs Numbers Noise
The monthly jobs numbers matter much less than the trends.
The work at hand.
Photographer: Paul Thomas/ BloombergThis article is for subscribers only.
I keep telling investors to ignore the monthly frenzy surrounding the monthly jobs report (see this, this and this). It isn't significant for their holdings, at least not in any actionable way. By the time we know for sure that the economy has accelerated or slowed, stocks will have long since reflected this in earnings and then prices. It is only partially a joke to note that economists are often the last to know.
Why should investors ignore the nonfarm payrolls numbers? Consider what must be done in order to either profit or avoid a loss based on changes in the employment situation. Investors would have to: