For those interested in the relationship between equity markets and unemployment, here is an interesting chart by The Economist that sums up that ‘synching feeling’.

One thing is clear, producing goods in cheap labor markets and exporting them to high valued economies only end up eroding long-term viability of these advanced economies. Therefore, even if the action is highly profitable and looks good on the balance sheet (to outsource production of some goods to cheap labor markets), this is but a short-term solution with serious long-term economic consequences.

In other news:
WSJ: Chained CPI, stocks and unemployment, imports
CNBC: Stock market to navigate negatives of earnings and economy

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