ST. LOUIS, MO (KPLR) – Financial adviser at Plan Corp Peter Lazaroff talks about today’s labor report. The Jobs report for October shows 161,000 jobs were added!
On today’s labor report, increases in U.S. wages continues are finally sustainable enough that inflation becomes an area of concern for investors.
After so many years of low inflation, even small increases could have a large effect, particularly for bonds. The difference between inflation of 1% and 2% seems trivial, but it has a dramatically different effect on your investments.
Also at risk are areas like blue-chip dividend paying stocks that gained favor during this low-rate, low inflation environment.
If inflation increases faster than expected, then fed may have to raise interest rates, which is good for your cash savings, but can be harmful to the economy.