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Don’t Take You’re Guard Down Yet As Hiring Explodes In March

Dear Reader,

On April 2nd, the United States government released its most up to date employment information that showed a shocker…  In a great way.

The United States added 916,000 jobs in March alone and the official unemployment rate fell to 6%.

President Biden had this to say about the numbers…

“This morning we’ve learned that our economy created 900,000 jobs in March. That means the first two months of our administration has seen more new jobs created than the first two months in any administration in history,” Biden said. “But we still have a long way to go to get our economy back on track after the worst economic and jobs crisis in nearly a century.”

I’ll be the first to say that the new administration doesn’t deserve full credit for this… Jobs are created by the private sector and small businesses as you know.

But it’s an encouraging sign the economic recovery is picking up.

This is especially important as we head into the busy Spring and Summertime travel and holiday season.

Why?

Because a huge chunk of the job gains were from hospitality and travel related companies hiring again… Many for the first time after the initial mass closures and firings that took place a year ago.

The industry was hit so hard that the industry as of February 2021 still had a 13.5% unemployment rate.

And it’s a major part of the economy.

Travel and hospitality account for 7.8% of the entire US economic output… or about $1.7 trillion of US GDP annually.

This is why employment – across the board – is so important.

It effects the entire United States GDP… Which effects unemployment… Which effects how well we are all doing economically.

When businesses mass fired people into the millions every week at the beginning of this pandemic, that’s one of the major reasons the economy came to a halt.  The other large factor to that was of course the lockdowns.

This is why I’ve said for months, figuring out the unemployment issue is the number one thing to fix before we’re on sound economic footing again.

And while we still have a long way to go… We appear to be on the right track.  At least for now.

But this is only one months’ worth of data…

I still recommend you stay cautious in your investment portfolio due to the other major risk factors I’ve talked about in recent weeks.

  • Inflation
  • Interest rates
  • Record Debt
  • Etc.

These risks remain.

But for at least one month, the employment picture is getting better.  And this is the largest underlying problem.

I recommend you stay cautious, but I don’t recommend you sell everything… So, what’s the best way to protect yourself from all these risks?

Make sure you’re in great stocks that have the following traits…

  • They’re cheap.
  • They have little to no debt compared to a lot of cash.
  • They produce large profits and cash flows.
  • And make sure they aren’t in industries that could be hammered by Covid.

These kinds of stocks – the ones I try to find for you every day – are things you should continue investing in because they will provide you good to great returns no matter what the market is doing.

All while protecting you from the major risks like valuation, unemployment, debt, and inflation.

To see some of those kinds of stocks that will help protect your retirement portfolio – Click the links below.

Disclosure – Jason Rivera is a 14+ year veteran value investor who now spends much of his time helping other investors earn higher than average investment returns safely. He does not have any holdings in any securities mentioned above and the article expresses his own opinions. He has no business relationship with any company mentioned above.

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