A picture is worth a thousand words and the below chart fits that mantra. As Argus Research notes in the chart, courtesy of Charles Schwab & Co. (SCHW), the unemployment rate is often referred to as a lagging economic indicator. As such, it tends to peak after the market has already begun to recover.
click to enlarge
The Fannie Mae (FNM)/Freddie Mac (FRE) bailout may be the event that puts a bottom into this market.Source:
Unemployment & Stock Returns ($)
Market Watch-Argus Research
September 8, 2008
http://www.argusresearch.com/
