Market Wrap-Up for Sept.7 (GG, FCX, BHP, DB, C, ABX, more)

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One of the things market watchers need to take into consideration is how irrelevant the actual unemployment rate number is. With labor participation rates hovering at 31-year lows, those whose unemployment benefits have expired are not technically counted any more. And how about those who can only find part-time work? We all know of people that are underemployed these days, despite having numerous higher education degrees, and are lucky just to be busing tables if they can get those gigs. Finally, we have a slew of formerly self-employed people whose businesses have collapsed in the past few years. These folks are not eligible for unemployment benefits at all, so they aren't counted in the unemployment number either.

The jobs created number is really the one that matters these days. And even with that metric, you need to dig deeper to see where the bulk of jobs are being created. Again, part-time work counts just the same as full-time when the official "jobs created" number is formulated.

Commodity plays spiked on today's jobs number fallout, as well as news China may be looking to increase infrastructure spending. Gold-miners like Goldcorp ( GG ) and Barrick Gold ( ABX ) gained, followed by commodity giants Freeport McMoran ( FCX ) and BHP Billiton ( BHP ). Financial stocks also benefited from the low-interest rate declarations continuing to be made by the Federal Reserve. Stocks like Deutsche Bank ( DB ) and Citigroup ( C ) led the rally as well there. We're certainly not trying to get caught up in the super-fast gyrations the markets can deliver, but at the same time, we need to be sure investor capital is still being deployed with the greatest of care as well.


Greed and Fear

Having been in the investment game for many years now, I can tell you the marketing strategy for most companies that cater to investors these days is focused on two central themes: greed and fear. Both concepts convert to eyeballs, readers, and subscribers superbly, but there's one catch. Most smart investors tend to get fooled only once when they latch on to a investment service, buy a special report, or make another kind of financial commitment.

Now we can't knock companies for needing to monetize their businesses, but the one-and-out approach doesn't make for the type of research ideas investors can count on to build wealth. Unfortunately we have seen how business media has gotten caught up with the sensational headlines and promo build-ups, just to feed the adrenaline junkies that come into our markets, only to be knocked out in short order. Again, the track record for trading success is poor, but the Wall Street professionals will certainly not turn away the next person willing to buy into the million dollar traders' dreams.

Before you click on the next dramatic headline you see ("stock market crash coming - what's an investor to do", "Why the Facebook IPO will make you rich", "Dow to hit 20K by 2015″, and so on), think about what your goals really are and how hard you worked for the money you are hoping to see grow. That's all I ask. Anytime you try to accelerate the process of building wealth, you almost always end up moving backwards.

A Look to Next Week and a Weekend Preview

Looking ahead to next week, third quarter earnings will continue to be very light. The focus will likely be on the economic data as well as the latest Wall Street analyst calls.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Stocks

Referenced Stocks: ABX , BHP , C , DB , FCX

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