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During an interview on CNBC, White House Economic Advisor Larry Summers, regarding the upcoming NonFarm Payroll Report this Friday, noted that “the blizzards that affected much of the country during the last month are likely to distort the statistics, and in past bliazzards those statistics ahve been distorted by 100,000 to 200,000 jobs, so it’s going to be very important… to look past whatever the next figures are to gauge the underlying trends.”
Sounds to us like Mr. Summers is setting us up for a bad jobs report. We’re going to mostly sit on the sidelines until then and then, where appropriate, add to positions on the potential dip. We believe that adding on dips remains a prudent strategy at this time. We also think that should the jobs number be weak, industrial, material and ag stocks should respond favorably as it may portend a weakening of the dollar. We’ll see. As of now, the bond market remains relatively strong and dividend paying stocks are holding up the day.