Analysts have forecasted the employment and inflation rate of 2016. A 2016 outlook forecasts a full employment goal.
Jeremy LaKosh says that earnings performances should improve modestly this 2016, his analysis for the year covers the income and employment sectors.
Jeremy LaKosh, the current Chief Financial Officer at a CCRC in Central Illinois, currently manages a portfolio of 70 financial statistics of about 500 companies and has predicted that United States will reach full employment rate.
LaKosh predicts that by mid-year in 2016 an unemployment rate of about 4.6% will be posted. This would mean that companies are in full employment. However, equity markets won't take this news with a cup of tea. By August, companies may post employment openings for less than 100,000 jobs. LaKosh states that full employment may sound good to hear but if we look at the market standing at 22x earnings and low jobs creation that means smart money will be cashed in.
In the same direction, LaKosh foresees that employers will want to hire aggressively and that would mean the offer on the table to get employees with potential is an increase in wage. This will cause a ripple outwards because wages are a cost to the companies hiring. That would mean they would need to place the negatives somewhere else. This increase will be ultimately placed on consumers.
Gasoline and energy prices have remained low and will remain low and may cause a stir in Foreign Exchange rates.
LaKosh believes that the US Dollar will be stronger in 2016, trumping international weakness and that means companies will beat their initial earnings goal for each quarter, as stated in LaKosh's post.
LaKosh has a bachelor's degree in history or political science from Eureka College and has an MBA from Kent University. He started investing at 16 years old.
