Nice article from John Mauldin (a sharp cookie) outlining some of the 'macro' or 'structural' issues that could impact financial markets in the next year or two. One focus of this particular piece is the increasingly visible role of government in the job picture. I found the data on govt vs private sector jobs are interesting. Check out the USA Today table showing avg salary difference govt vs private sector.
As John notes, the old assumption was that govt jobs paid less but were more secure. Private sector jobs paid more but were more volatile. The old risk:reward axiom.
That risk:reward axiom seems out of whack currently. The question market participants need to ask is whether that divergence is likely to continue.
Stated differently, how will this government intervention influence prices over time?
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