Recently the US Labor department has released the monthly report on the employment which showed that there is a weak job market. The actual number is far less than the estimated number and that's why it's worrisome. Along with that the number is down from the previous month.
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That means the number of jobs in July is far less than the number of jobs in June. This might be because of less hiring and that's the worry part. The unemployment rate is continuing rising in the US and which will affect the US government spending. Government who were spending on the growth till now, is now have to change there stance and now they have to spend on the social security. Even they might start rate cut and that's one of the reason of stock market going down.
The US market fall was highest in last 3 years because of these reasons. And it might not stop here and there will be more correction I guess. Along with that people are also comparing this job data with the recession. If people are not hiring, that means they are anticipating there will be recession in near future and they have to save money for that.
I know people are talking about the recession for a long time and it didn't arrived till now, but you never know when this might be reality. So it's better to have some cash in hand. I have cash, and that's why I will buy some indexes rather than direct equity. The index might go down a little bit but I am sure it will bounce back sooner or later. People who have invested in the indexes in the 2020 are actually enjoying today and that's why it's better to continue investing in the indexes even if ou don't want to invest in stocks directly.
