High Unemployment Is Good for the Stock Market!?

Since 1948, the stock market has returned, on average, 6.6 times more per year when unemployment has been considered historically high than when it has been low!


According Ned Davis Research, when the rate of unemployment has been above 6%, the S&P 500 has gained ground at a rate of +13.9% per year.


However, when the unemployment rate was considered “low” (4.3% or below) the S&P has gained at an annualized rate of just +2.1% per year!