New filings for unemployment benefits fell last week, dropping the most since early September. Is that a sign that the labor market will grow at faster rate? Maybe, although we’ll know more if we see claims drop further in the weeks ahead. As for today’s update, the fact that the trend in new claims is again drifting lower is a positive sign, and one that may develop into a stronger tailwind for raising the growth rate for payrolls.
Daily Archives: November 21, 2013
Rebalancing “Mistakes”
Paul Merriman concludes that “rebalancing could be a huge mistake.” Perhaps, although it could also turn out to be a huge benefit. Then again, it’s more likely that rebalancing’s effects will fall somewhere between those two extremes for most portfolios. In any case, Merriman’s focus is sensible, even if his conclusion is extreme. You just can’t spend too much time thinking about rebalancing. Even if you decide to shun it completely, which Merriman comes close to advocating for equity strategies, your rebalancing choices are likely to be critical factors for driving portfolio results through time.