( HINT: Click-and-drag left-to-right on the top chart (S&P 500) to zoom in to a specific date range. Double-click on S&P 500 chart to zoom back out. )
This chart shows the Unemployment Rate, in relation to the S&P 500. Note that the Unemployment Rate is a lagging indicator. Economic contractions (recessions) lead to job losses. Economic growth leads to more demand for workers. After a recession, employers start to hire after they feel comfortable in their business outlok going forward. After the last 2 recessions, it took an average of 18 months for the Unemployment Rate to peak and start its decline. We expect Unemployment to remain high well into 2010 and 2011.
= recessions
This chart shows the Unemployment Rate, in relation to the S&P 500. Note that the Unemployment Rate is a lagging indicator. Economic contractions (recessions) lead to job losses. Economic growth leads to more demand for workers. After a recession, employers start to hire after they feel comfortable in their business outlok going forward. After the last 2 recessions, it took an average of 18 months for the Unemployment Rate to peak and start its decline. We expect Unemployment to remain high well into 2010 and 2011.
= recessions