Tags: Jobs | Bull | Market | stocks

Strategist: Forget Dismal Jobs Report, Bull Market Will Charge Higher Again

Wednesday, 11 Apr 2012 08:03 AM

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March's dismal jobs report shouldn't deter investors away from stocks, as they'll miss out on a bull market, says Mike Lenhoff, chief strategist at investment management and financial planning firm Brewin Dolphin.

The Bureau of Labor Statistics reports the economy added a net 120,000 jobs in March, far less than expected.

"You can't let one month number side-track you," Lenhoff tells CNBC.com, adding "when you get a disappointment of that magnitude… it's likely to throw a lot of people off course."

Editor's Note: Study: Bernanke Intentionally Devalued the Dollar

"My own view on this is that that was a bum steer."

Manufacturing and service-sector data over the recent past show an economy strong enough to support more long-term employment gains, Lenhoff says.

Stocks fell on the March jobs report, but they'll rebound.

"I think that's what this figure has done, it's a disturbing number so the market's going to say 'right, time for some profit-taking,'" Lenhoff says.

"I do think that we're going to see a decent amount of profit-taking and then the buyers will come in."

The weak jobs report sparked talk the Federal Reserve may intervene and stimulate the economy via liquidity injections into the economy, which would send stock prices rising.

That sentiment is quickly ebbing.

Federal Reserve Chairman Ben Bernanke spoke in public after the report and made no mention of monetary policy changes, while many argue it would take more gloomy numbers involving many more economic indicators to spark Fed action.

"I believe the Fed is not going to waste any ammunition unless it sees further weakness," says Rex Macey, chief investment officer at Wilmington Trust Investment Advisers, according to the Associated Press.

Editor's Note: Study: Bernanke Intentionally Devalued the Dollar


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