CBS Fast Money
Trading a Jobless Recovery
Published: Friday, 7 Jan 2011 | 6:04 PM ET
By: Drew Sandholm
As U.S. unemployment remains high, so too does the markets — an issue examined by Zachary Karabell in the cover story of this week’s Time Magazine and on Friday’s “Fast Money,” as well.
“No matter what we spend in terms of stimulus, no matter how much of unemployment benefits, technology and globalization means that a lot of jobs that have gone from the United States are not coming back,” explained Karabell, president of RiverTwice Research.
While Karabell is bearish on that aspect of the economy, he remains bullish on the markets themselves. Karabell noted that many companies continue to report positive earnings simply because they’re not tethered to US employment.
Being as Karabell thinks employment isn’t likely to improve in the U.S., he wants to invest in sectors that won’t be impacted by the job situation, including names like IBM [IBM 147.69 -0.24 (-0.16%) ] and Coach [COH 53.09 0.26 (+0.49%) ].