Jamie Dimon’s Comeuppance

Posted on May 15, 2012 by John S. Hopkins, Jr.

Jamie Dimon, JP Morgan‘s outspoken CEO, has finally gotten at least a small taste of what it feels like to eat humble pie. Dimon has gone out of his way ever since taxpayers bailed out the big banks to say JP Morgan should never have been lumped in with the rest of the financial community since it had its act together above all others. Not so.

Instead, as everyone knows by now, JP Morgan has just announced it will be taking some heavy trading losses, so Dimon’s assertion that JPM was the cream of the crop no longer holds water. In fact, it could end up being the irony of all ironies if, because of JPM’s actions, all banks are finally subject to additional scrutiny, including the Volcker rule, that Dimon has publicly slammed.

To refresh here, the Volcker rule, named after former United States Federal Reserve Chairman Paul Volcker, was introduced as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The whole idea was to prevent taxpayer backed banks like JPM from making speculative bets that are not beneficial to their customers. So, the fact that Dimon has been so vocally opposed to the rule makes him look foolish after this latest incident.

Not only does it make Dimon look foolish, but it has already cost one high level executive, Ina Drew, her job and you can bet there will be more to follow. The big question then becomes; will Dimon himself be forced out? For certain, he has been one of the shining stars in an industry fraught with trouble, but the current foibles at JPM point out that even the “best of the best” aren’t really able to keep a tab on all that goes on in such a large financial institution. This is fodder for all of the anti-bank and Wall Street folks who have felt shafted by the banks every since they were bailed out back in 2008.

Of course, like most other bank debacles, this will likely pass as well, with JPM going on business as usual. However, there is a scenario where the political winds just might be strong enough for something to actually come out of the Volcker rule. This could have the effect of making it more difficult for banks like JPM to place such risky bets with customer money.

No matter what happens from here, there’s one thing you can be absolutely sure of; this won’t be the last time we hear of such large trading losses. It’s the nature of the beast, and as long as banks are making big bets, there will be big losses. The minimum we should do then is to make bank executives like Dimon suffer the consequences if losses occur under their watch.

Do or Die Time on S&P

Posted on May 8, 2012 by John S. Hopkins, Jr.

The S&P is right on the verge of making a big statement here. The only question is will it be a positive or negative outcome?

Let’s look at a one year chart of the S&P here. What stands out? The 20 day moving average is now below the 50 day. Notice this happened in early June and then early August, 2011. It then happened again for a very brief moment in December, 2011. In the June and August periods – especially August – the market fell sharply while in December it was brief and not as pronounced.

Now we are at the crossroads once again and we’re seeing the market isn’t in a happy mood. The question then becomes, can the bulls hold here or will the bears take full advantage of this technical break to drive the market lower?

In the June 2011 time period, the S&P went from a high of 1345 to a low of 1258 in just over two weeks, a 6.5% correction. In the August 2011 time period, the S&P went from 1250 down to 1101, a correction of nearly 12% in less than a week.

Once the 20 day crossed back over the 50 day in early October 2011, it was pretty much off to the races, as the S&P put in a series of higher lows and when the bears failed to move the 20 back below the 50 in mid-December for any sustained period of time, the bulls took charge for 4 months. So, we are once again at a critical juncture here, and one that could be a game changer.

So, what should we expect here? The bears have already challenged and gone below the most recent low on the S&P of 1357, so the next key level of support will be at 1340, the March 6 low. Since the market is nearing oversold territory, 1340 should hold. if it does, then we could see a turn to the upside, with limited damage. However, should 1340 go, then we could be in for a more sustained and painful pullback.

I have to say that I don’t like what I see. However, it becomes easier to handle since I know 1340 is key, so as long as it holds, no problem. Should 1340 go, then 1300 could come into play, making the correction more significant.

The bulls have stood hard and fast where they needed to the past 5 months. Will this time be any different? We should know fairly soon, and the good thing is we know exactly what to watch for.

Go away and sell in May? Not so fast!

Posted on May 1, 2012 by John S. Hopkins, Jr.

I saw an article in Yahoo Finance about the old adage, “Sell in May and Go Away“. In the article the focus is on the period between May and October. But, does this mean May is a month to avoid? Hardly. Instead, our Chief Market Strategist Tom Bowley makes the opposite case as he laid out in his marketFORWARD section of our our most recent marketPULSE newsletter. Here’s a few nuggets of information you might want to consider:

1-On the S&P 500, May ranks 7th out of the 12 months in terms of performance since 1950
2-The past four decades have shown May gaining on average 7.83% on an annualized basis
3-Prior to 2010, the S&P had gains in 20 out of the previous 25 years
4-The Russell 2000 has finished higher than it began in May 16 of the past 24 years with an average annualized return of 17.96%

This year May looks like it could be setting up for higher prices as well. Today alone the Dow hit fresh four year highs, the VIX is showing signs of weakening, and the S&P is closing in on fresh 52 week highs..

So, the bottom line is that it makes no sense to just blindly bail out of the market in May; it’s a myth. And, in today’s fast pace market, active traders aren’t likely to hold positions for 6 months anyways, hoping that the market performs well. Instead, it makes more sense to analyze the market “in the moment”, letting history serve as a guide, not letting it be the last word.

(If you don’t already subscribe to our free newsletter here’s Tom’s latest article for everyone to enjoy!)

marketFORWARD – Published Sunday, April 29, 2012 by Tom Bowley

Monday marks the end of April with May right around the corner. Of course we all know that famous Wall Street adage “Go away in May!” Will it ring true again this year? The temptation to walk away from the stock market will definitely be there after the drubbing that U.S. equities have taken the past two years. But history doesn’t really support the argument to sell equities now. We don’t care what the parade of “experts” on CNBC say.

Rather than pay attention to the rhetoric, let’s discuss the ACTUAL numbers, shall we? On the S&P 500, May ranks 7th out of the 12 calendar months in terms of annualized performance since 1950. May has produced gains in 35 of 62 years during that span. While May’s annualized return of 2.79% trails the S&P 500′s average annualized return of approximately 8.5%, the last four decades have proven to be much closer to the norm, gaining 7.83% on an annualized basis — and this number includes the horrendous May 2010 and May 2011 results, where the S&P 500 fell 8.20% and 1.35%, respectively. The 2011 performance was aided by a strong finish during the last four days of May where the S&P 500 regained close to three full percentage points. The stock market really struggled throughout May in both of the last two years.

What you won’t hear on CNBC, however, is that the S&P 500 — prior to 2010 — had gained ground during the month of May in 20 of the previous 25 years. Does that sound like a bearish period to you? Furthermore, the Russell 2000 shows a VERY strong historical bias to the upside during May. In fact, the Russell 2000 has finished May higher than it began in 16 of the last 24 years, producing an annualized return of 17.96%. May trails only the months of December and April as the best performing month for small cap stocks.

Again, I’ll ask the question. Is May when you really want to go away? We don’t think so.

In fact, we’re of the opinion that the stock market is likely to break to fresh 52 week highs during May. There are some truly bullish signs that continue to emerge. Consumer discretionary stocks broke to a new relative high vs. consumer staples. That generally does not happen just prior to a market selloff. If anything, this type of relative behavior tells us that the 2012 rally is not over — that it is quite sustainable indeed. Check out the relative breakout in the consumer discretionary space:

The time to be concerned about a stock market advance is when money is moving on a relative basis towards the more defensive consumer staples sector. When this ratio is moving higher, as it is now, it’s an indication that investors are willing to commit to the higher risk consumer discretionary sector. In a bull market, you ALWAYS want to see investors scooping up the riskier areas of the market. So far, so good.

We mentioned the historical component of the market as we approach May, but it’s also important to note that the first week of May tends to be its best. For whatever reason, traders tend to have a bullish mindset as we usher in the month of May. Earnings will begin to slow down. There are still plenty of companies that will be reporting this week, but the most of the bigger names have already released their quarterly results. Still, it would be smart to check your companies for earnings dates to avoid the “big surprise”.

The market seems to be building up its resiliency to bad news again. Last week, we had the GDP shortfall, an S&P downgrade of Spain debt, the Netherlands unable to reach compromise on their budget issues, weak manufacturing data from China, Germany and France, political instability in France and another poor initial claims report. All of those bearish reports did nothing to slow down the bulls as technical buyers began buying right where they needed to. Price support on the S&P 500 was at 1357 and that index bounced at 1358. Take a look:

We’re expecting the market to add to last week’s gains. It’s hard to believe but another round of critical employment reports hit the Street this week as the ADP Employment Change report is released on Wednesday, initial claims will be out on Thursday and the biggie, the government’s Nonfarm Payrolls report is due out on Friday. All of these reports will be out during pre-market action so make sure you tune in. So long as the BIG intermediate-term price support levels aren’t lost, we remain clearly in a bull market. The levels to watch to the downside include the following:

S&P 500: 1340
NASDAQ: 2881
Russell 2000: 773

Happy trading!

Revved Up

Posted on April 25, 2012 by John S. Hopkins, Jr.

I took some time today to attend an important small business seminar sponsored by Vocus. This web event was all about branding, something, when done well, can make a huge difference in growing a business.

We’re a small business, but as I listened to Jim Joseph I instantly thought; why can’t we become a “go to” company? Do we really need to be gigantic to get well known?

I was heartened to learn that we’re actually doing some of the things Jim discussed. We know we have unique skills; we know exactly what we have to offer; we know that our customers are highly satisfied; we know our demographic.

I could quickly see why positioning is so important and why we need to do everything possible for our customers so they say, “Invested Central can help me better than anyone else.” I truly believe that!

I took a lot of notes and purposely typed in bold and capital letters: BE THE BRAND THAT EVERYONE WANTS TO CHOOSE! Is this unrealistic? Maybe. But, if you – and your customers – believe in your product, then why can’t you be the brand everyone wants to choose?

I’m a HUGE believer that in almost any quality presentation (like today’s) you can take away nuggets of information that can help transform your business. Just planting the idea in my mind that we can become a brand that people come to rely on gets my juices flowing, and I’m ready to take ACTION!

Bank of America – Who to Believe?

Posted on April 19, 2012 by John S. Hopkins, Jr.

Bank of America reported its earnings on Thursday and beat estimates. As a result, the stock got a small pop when the market opened, but nothing special.

In reading excerpts from the post-earnings interview as reported by Reuters, chief executive officer Brian Moynihan was upbeat, saying, “Our strategy is paying off: with the economy steadily improving and because of the work we have done to strengthen and simplify our company , we saw improved profitability in all of our businesses this quarter compared to the fourth quarter of last year.”

So, Moynihan seemed to be quite pleased with the bank’s progress and the direction it is headed in, but what about the more important question; what does the market think?

If you take a look at a few charts, you could come to the conclusion that Moynihan’s words ring hollow; that is, while he’s doing his job in promoting the direction of the bank, the market feels otherwise.

Let’s start with a one year chart of BAC. We see that the stock closed at 12.27 one year ago. Today the stock is trading at $9 a share. So, by my math, BAC is trading 25% lower than it was a year ago. This compares to a rise in the S&P of just over 4% for the same period of time. That’s quite a negative spread.

Now let’s take a look at a 5 year chart. We see that the stock was trading near $51 a share 5 years ago in April, 2007. At today’s share price of $9, that’s an 82% haircut. This compares to a loss in the S&P of 6.5% for the same time period.

So, by any measurement, BAC has badly underperformed, yet Moynihan is putting a positive spin on what can only be described as woeful performance.

One might argue that BAC has done well since it hit a bottom of roughly $5 a share back in December, rising to $9 a share. But, any way you cut it, the market continues to be underwhelmed by its performance.

This basically goes to the heart of the market; it never lies. Instead, investors and traders vote with their wallets, and in the case of BAC, it hasn’t performed as admirably as Moynihan would like everyone to believe. Point being, don’t put too much stock (pun intended) in what the CEO of a company says; let the market be your true guide.

Starbucks anyone?

Posted on April 13, 2012 by John S. Hopkins, Jr.

There’s a standing joke in Fredericksburg, VA, home of our Chief Market Strategist, Tom Bowley. If anyone goes into the Starbucks Tom frequents on a regular basis, and simply asks for an “Iced Tom special” they know exactly what you are asking for, right down to the whole milk and one sweet and low. I know this for a fact since I’ve stopped by the Starbucks a few times on the way to meeting Tom, drove up to the drive in window and said, “I would like one “Iced Tom special.” Nothing else. And they knew exactly what I was asking for. Damn impressive.

Now, it may be true that Tom has frequented this particular Starbucks so many times that they simply coined that name originally as a joke, but it has taken on a life of its own here at Invested Central where we all can be easily impressed.

The reason I’m relaying this story is that in case you haven’t noticed lately, Starbucks just keeps going higher and higher. In fact, the stock is presently at its all time high, having climbed over $60 per share, with a market cap of $45 billion. That’s a lot of coffee beans by any measure.

To me, watching Starbucks climb to its all time high while prices at the pump climb as well is a bullish statement for our economy. It’s certainly a lot different picture than it was back in 2008 and into early 2009 when the stock got as low as $7 per share. In fact, since its low of $7.06 in November, 2008, the stock has climbed six fold+, and in hindsight, marked the bottom of the market.

Basically what’s happened is that the consumer has figured out how to have his/her coffee and drink it too while dealing with the higher prices at the pump. So, instead of making the decision – as many did back in 2008/2009 – to choose between their coffee or a gallon of gas, the answer is to choose both.

Now, from a purely technical level, Starbucks’s stock price looks stretched; it’s risen 70% in six months and the oscillators are showing the stock is in overbought territory. But, volume patterns look very nice, and the stock is in breakout mode.

One could argue that just like the stock hit bottom in 2008/2009, marking a turning point in the market, perhaps being at such a lofty level now is a precursor to a market top. But, it’s too early to make that proclamation. In fact, if it turns out that gasoline prices are getting a bit long in the tooth, the consumer might actually end up with some additional discretionary income, just what companies like Starbucks are hoping for.

At Invested Central we’re always looking for ways to get the word out about our business as we continue to grow. So, I thought perhaps we could convince Starbucks to go global with the Iced Tom Special, but only if Invested Central got mentioned in some fashion. Perhaps an ICed Tom Special; meant to translate into Invested Central Education Tom Special, but that’s too much of a tongue twister. Not sure what the right angle is, but we’re going to try to figure it out. Come to think of it, maybe the reason Starbucks stock is at such a lofty level is because Tom spends so much money there. THAT alone should get us in front of Starbucks CEO Howard Schultz. That’s the ticket!

So now you know how Tom likes his coffee, how do you like yours?

Looking to those who inspire

Posted on April 10, 2012 by John S. Hopkins, Jr.

These days, I find myself looking for individuals who inspire, who have the ability to look beyond what is normal to most of us, who aren’t afraid to look foolish if something doesn’t work out. These are the people who combine intelligence with creativity, letting nothing stand in their way, taking the people around them up a rung higher on the ladder to success.

One individual who never ceases to amaze me is Dan Gilbert, the chairman and founder of Quicken Loans, headquartered in Detroit, Michigan.

I first met Dan back in the late 80′s when I had my other business that dealt with mortgage bankers. We helped companies determine the value of their mortgage portfolios and acted as middle men in the sale and purchase of mortgage related assets.

When I first walked into Dan’s office I knew right away that he was different than most of the people I dealt with, many at the executive level. Dan had a glow about him, was overly enthusiastic about new ideas he had, and loved to share those ideas with anyone willing to listen. Whenever I went to see him, I knew I was in for a treat, and that his ideas were always ahead of the curve.

I remember early on when Dan introduced me to a new concept at what was then Rock Financial; mortgage in a box. Essentially, anyone who Rock came in contact with was sent a kit in a box to simplify the mortgage loan process; brilliant, and a precursor to the Internet age.

As time went on, and the Internet came into being, Dan had his team way out in front. In fact, in 1999, Intuit bought Rock Financial, making Dan a rich man with Rock becoming a part of its Quicken Mortgage subsidiary, with Dan remaining as CEO of the combined company. Thus, Dan and his team were in the forefront of online mortgages, and mortgage lending in general. Ultimately, Dan bought Quicken loans from Intuit, another brilliant move, and now continues as chairman of the company.

But, as is the case with entrepreneurs of his ilk, running Quicken loans day to day just wasn’t enough. So, what did he do? He bought the NBA’s Cleveland Cavaliers, at one point infamously penning an open letter criticizing the departure of the team’s star, LeBron James.

In addition to Quicken and the Cavaliers, Dan is involved in a number of other dynamic entities, including Rockbridge Growth Equity, LLC and Detroit Venture Partners. He’s been in the forefront of Detroit’s recent revival, scooping up once envied and now worn down buildings, while becoming the second largest landowner in the Detroit area next to General Motors. He has a vision to revitalize Detroit by matching individuals and retailers in the city, making sure there is adequate living space for those drawn to the “new Detroit” and those companies looking to provide products and services.

As an example of this, I just read a story in Crains Detroit, where Quicken is reaching out to 2000 individuals just laid off at Yahoo, in Sunnyvale, CA. His message to them? Forget Silicon Valley; come to Detroit where the real action is! Chutzpah.

All of this to say…how does one guy do as much as Dan Gilbert does in a lifetime? Is it boundless energy and enthusiasm? Is it type A to the core? Is it love of new ventures? Could it be a need to be challenged at all times? Could be all of these combined. Whatever it is, I want a little piece of it, because it just makes things so much more exciting.

Bank Dividends add Insult to Injury

Posted on March 16, 2012 by John S. Hopkins, Jr.

Bank Dividends add Insult to Injury Banks have been on a tear lately, helping to lead the overall market higher. Part of the reason they’ve taken off is many of them have recently announced increases in dividends, making their respective shares more valuable.

Therein lies the problem.

Let’s step back in very recent history to the fall of 2008. That’s when the nation was on the brink of a complete and total financial meltdown. It’s when TARP was born and it preceded a fall in the S&P to 666 in March, 2009. It’s when the banks were bailed out, given many billions of dollars lest the world economy come to a screeching halt.

Let’s also take a moment to remember why the banks were brought to their knees. They collectively engaged in lending practices and the creation of toxic financial instruments that ultimately resulted in the collapse of the US housing market, where millions of homeowners ended up in foreclosure.

Now we can fast forward to today.

Earlier this week the Federal Reserve conducted stress tests on major banks. A few of the banks, like Citigroup and SunTrust, came up short of looking like they could withstand another meltdown. The other big banks passed, and some immediately (or in the case of JP Morgan, prematurely) announced an increase in dividends.

One could argue that since the banks survived, paid back all TARP funds and some recently agreed to a multi-billion dollar settlement to deal with foreclosures, they should be free to do what they want with their excess earnings. But, the $25 billion or so that is to be used to deal with the foreclosure situation is a pittance compared to the damage it has caused to the American economy and psyche.

Consider this. At the height of the financial meltdown in 2008.2009, American Express was on its knees. The stock had fallen from $50 in April, 2008, to $9 by March, 2009; that’s an 82% haircut. Like many other big financial entities at the time, it was on the verge of going under. Instead, American Express was granted a bank holding charter, specifically so it could qualify for TARP funds.

Adding insult to injury, the board’s chairman and CEO at the time, Kenneth Chenault, who was at the helm when the stock’s price collapsed, was granted millions of dollars in stock grants in January, 2009, when the stock had fallen sharply, and under his watch. This almost assured Mr. Chenault would put millions of dollars in his pocket if the stock recovered along with the rest of the economy, not because of any extraordinary efforts on his behalf.

So, instead of Mr. Chenault being penalized for the stock plummeting under his watch, he was rewarded by getting low price stock options that were practically guaranteed to rise once the economic calamity ended, with the stock now trading at $57 per share.

During the same period of time, millions of individuals lost their homes to foreclosures, while no one in any executive level capacity was held accountable for the shoddy lending practices. A few may have been shamed, but no one ended up in jail for what is arguably one of the most diabolical chapters in the financial history of our country.

Let’s also not forget that when TARP was established it was backed up by the US taxpayer – yes, you and me. Yet the banks, and the banks alone, were the beneficiaries of billions of dollars in bail out money.

This brings me to ask the question; why would the banks even think about raising dividends at this time, instead of using those precious dollars to help out those who have fallen on hard times? I imagine Jamie Diamond, CEO of JP Morgan, would scoff and laugh at such a suggestion. Remember, he’s the one who pre-empted the Fed’s announcement about stress test results by saying the bank would raise its dividends, almost mocking the process, what I would term an “in your face” moment.

I’ll tell you this. In spite of a number of big banks passing the most recent stress test, if the economy went in the tank again, they would be the most vulnerable. And, as much as I would like to think we learned our lesson from the most recent meltdown, you can bet that we would hear again that the banks would need to be protected, to keep our economy from collapsing. It will be then that you will hear the cries that the banks should have held on to those precious dividend dollars since we will be called on once again as taxpayers to save the day.

Goldman on the Hot Seat Once Again

Posted on March 14, 2012 by John S. Hopkins, Jr.

By now you may have seen the article in the New York Times where a London based executive director of Goldman Sachs resigned with a vengeance. Greg Smith laid it all on the line in the article basically confirming what many of us have thought and expressed for a long time now; that the culture at Goldman is all about making money, and the hell with the client.

Mr. Smith isn’t some lowly guy who just decided to dump on his former employer. This is a seasoned veteran who started out with an idealized view of a storied Wall Street firm and found out that it wasn’t at all what he expected it would be. In fact, he had this to say:

“The place has veered so far from the place I joined right out of college that I can no longer in good conscience say that I identify what it stands for…I am sad to say I look around today and see virtually no trace of the culture that made me love working for the firm for many years.”

Ouch.

Then there’s this zinger, aimed right at the top of the heap:

“When the history books are written about Goldman Sachs, they may reflect that the current chief executive officer, Lloyd C. Blankfein, and the president, Larry Cohn, lost hold of the firms culture on their watch. I truly believe that this decline in the firm’s moral fiber represents the single most serious threat to its long-run survival.”

Take that, Lloyd!

Smith hints that Goldman sells products to clients strictly for the money, even if they are wrong for them. This pretty much mirrors what others have said about how Goldman conducts itself.

So, does the market – and Goldman’s clients – really care what this guy has to say – or might it be seen as sour grapes? In looking at the stock, it’s had a nice run lately, up 33% since the beginning of the year. But, where the S&P and Dow are at multi year highs, Goldman is still down 26% off its annual high; that tells you something right there.

Shortly after the article hit the papers, Goldman came out with a memo to its employees that leaked to the press. As expected, Blankfein pointed out that Smith was for the most part an anomaly; that everything was peachy at Goldman, as expressed in feedback surveys by its employees. Please. If you worked for a company where the bulk of your compensation depended on the success of the business, would you go out of your way to bad mouth the company and paint a bleak picture? Hardly. That’s where Smith comes in. He’s no longer beholden to the big, bad beast on Wall Street.

A perplexing jobs picture

Posted on March 8, 2012 by John S. Hopkins, Jr.

As a native Detroiter, I keep a close eye on what’s happening in the Motor City and I like what I’ve seen lately. There’s been quite a renaissance in the downtown and midtown sections of the city where old buildings (the ones I used to courier between as a young man) are being bought and renovated by successful businessmen like Quicken Loan‘s Dan Gilbert, the owner of the Cleveland Cavaliers who is one of Detroit’s biggest cheerleaders.

One of the reasons Detroit is coming alive is the auto sector has picked up big time, and when cars are selling, suppliers and dealers get busy as well. Now I’m seeing stories that some manufacturers and suppliers are having a difficult time finding qualified workers to fill skilled positions, which tells me the economy is on the mend.

I just read an article by Phil LeBeau, CNBC’s auto and airline industry reporter that is titled, “Manufacturers pay a bounty for skilled workers.” In his article, LeBeau points to several companies having a difficult time finding employees to fill important positions, a far cry from the scene a few years ago when no on wanted to hire anyone. In fact, LeBeau points to a company in Kentucky that is willing to pay a $2500 signing bonus for welders, something rare in blue collar land.

I’ve seen a lot of evidence lately pointing to a shortage of skilled workers because new hires are required to have education/experience not previously required. For example, in the past, almost anyone could stand in an assembly line doing routine tasks, but now many of those tasks require computer skills that older workers are lacking. Thus, many companies are having to provide specialized education or are steering prospective workers to classes that will teach them the skills they need to fill new jobs.

I’ve got a good friend in a management level position at a company that provides project management services to clinicians and scientists, so a very specialized field, and she tells me it is extremely difficult finding qualified professionals. This pretty much tracks what I’ve been reading lately in other specialized fields as well.

At the same time, while the auto companies themselves have announced new hiring initiatives, the numbers they are talking about are small compared to the massive layoffs we saw back in 2008/2009. And, they are in no hurry to add one additional body unless absolutely necessary; they’ve gotten lean and mean.

Point being, there are a ton of job openings out there that cannot be filled, an ironic twist when you think about it. The unemployment rate, though coming down lately, remains at 8.3%, making it difficult for the economy to crank up big time. So we’ve got this bifurcated situation of a great demand for specific jobs and many unemployed individuals who would love to work but lack the skills. I guess it beats a few years back when absolutely no one wanted to talk about hiring, but a bit perplexing when trying to figure out the magic formula that will get people back to work and get the economy humming.

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