Private payrolls in the US grew at a surprisingly slow pace in August, according to this morning’s monthly employment update from the US Labor Dept. Companies created 140,000 new jobs last month—well below expectations for 200,000-plus. The disappointing news raises new questions about the strength of economic growth–and the timing of the Federal Reserve’s interest-rate hike.
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The tactical asset allocation model that’s outlined in Meb Faber’s widely read paper–the most downloaded paper on SSRN.com, in fact—went to cash at the end of last month, Bloomberg reported earlier this week. The risk-off move has attracted a fair amount of attention, which isn’t surprising, given the fame and influence of the 2006 paper (and its revisions)– “A Quantitative Approach to Tactical Asset Allocation.”
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● US jobless claims rise, but remain near historically low level
● ISM: a slower but still solid pace of growth for US services sector in August
● PMI: growth in US services rises to 3-month high in August
● US job cuts fall sharply in August
● US consumer comfort index slipped last week
● PMI: Eurozone retail sales growth eases in August
● European Central Bank lowers growth forecast