Market Watch
Mark Hulbert
Oct. 23, 2018
The bull market on Wall Street is vulnerable for a most-unlikely reason: U.S. unemployment is particularly low.
That’s certainly contrary to the widespread narrative that the low unemployment rate is good news, indicating that the economy is firing on all cylinders. But there’s no denying that the stock market in the past has struggled when the unemployment rate was as low as it is now.
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Why would the stock market perform more poorly when the unemployment rate is lower? The primary reason is that low unemployment puts pressure on the Federal Reserve to raise interest rates. By the same token, high unemployment leads the Fed to stimulate the economy.
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https://www.marketwatch.com/story/why-low-unemployment-is-a-red-flag-for-stocks-2018-10-23?mod=newsviewer_click
