Announcer:
4 Your Money is brought to you by NelsonCorp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4 Your Money. We’re joined by David Nelson, CEO of NelsonCorp Wealth Management. Welcome back, David.
David Nelson:
Thank you. It’s always a pleasure to be here.
Brandy Auterson-Hurst:
So we’ve seen some concerning trends in employment numbers recently. What are your thoughts on this?
David Nelson:
Recent data is showing that the unemployment rate has begun moving higher, and I don’t think that’s a major surprise out there to a lot of people. The concerning part of that is that historically, once it starts moving and rising, what we see oftentimes is that it continues down that path for quite some time, and typically that’s associated with an economic downturn.
So my chart that I brought today, the blue line is basically what we’re doing is the percentage change in the number of full-time employed US workers from a year ago, and it goes back to the 1970s and that’s the blue line. And so the red line is showing areas that shaded economic recessions. And so when we put this together, what we see here is I think a pretty concerning item.
Obviously this is one chart, it’s looking at one area, but history says that every time that this has taken place, it’s been followed by an economic recession. And that’s the concern as far as that we look at today.
Brandy Auterson-Hurst:
So what does this mean for viewers investments?
David Nelson:
Well, I emphasize this, I said it earlier, but I want to hammer it home. And that is this is one indicator and historically this has been a good indicator, but history could be different this go round. So I wouldn’t put too many eggs in one basket as far as there’s going to be a downturn, but chances are that things are slowing. And again, people should be aware as far as what they own, and again, maybe look for some protection as far as going forward.
Brandy Auterson-Hurst:
All right, David, thanks for your insight today.
David Nelson:
Thank you.
Investing involves risk. Depending on the types of investments, there may be varying degrees of risk. Investors should be prepared to bear loss, including total loss of principal.
Indices mentioned are unmanaged and cannot be invested into directly.
This video includes a paid appearance.