A Black Swan Event And Higher Taxes Persist As Financial Risks Amid The Boom

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The job situation report released this morning by the U.S. Bureau of Labor Statistics (BLS) was a good surprise, and the stock market closed at a record high this week. Amid the boom, however, as the economy recovers from the Covid crisis, it’s wise to consider what could go wrong.

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First the good news: Total employment rose by 916,000 in March, much higher than the 625,000 net new jobs expected by economists. The jobs recovery is stronger than expected, reflecting better than expected vaccination rates.

With three million Americans vaccinated daily in recent days, March went out with a roaring jobs boom that knocked the unemployment rate down to 6%, from 6.2% in February, 6.3% in January, and 6.7% in December.

“These improvements in the labor market reflect the continued resumption of economic activity that had been curtailed due to the coronavirus (COVID-19) pandemic,” according to a BLS press release.

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The stock market was closed today for Good Friday. The Standard & Poor’s 500 stock index closed Thursday at an all time high of 4,019.87. The index gained +1.18% from Wednesday and +1.13% from last Friday’s close. The S&P 500 index is up +56.97% from the March 23rd bear market low.

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This article was written by a professional financial journalist for JP Wealth Management, Inc and is not intended as legal or investment advice.

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