April Jobs Report Is Robust, But That Might Belie Truth
NEW YORK (MainStreet) The Labor Department reports April jobs surge by 288,000, while the unemployment rate drops to 6.3% as the extremely cold weather effects on the economy begin to dissipate. Pension Partners chief investment strategist Michael Gayed tells TheStreet's Joe Deaux in the above interview that investors should beware of the great headline numbers, though, because the details suggest a much weaker picture. With that said, February and March jobs numbers revised higher, making Friday's report the best since 2013.
Gayed also told Deux investors should be worried that wage growth and hours worked was stagnant. Gayed says that despite improving labor statistics and a pullback in the Federal Reserve's economic stimulus, Treasury yields continue to drop. Check out the video on the next page to see what Gayed says about the adage "Sell in May and go away."