Understanding Non-Farm Payroll (NFP) and my Investment Philosophy
The Non-Farm Payroll (NFP) report is a key indicator of economic health, reflecting the number of jobs added or lost in the U.S. economy, excluding farming. Investors often closely monitor NFP data, as it provides insight into employment trends and can influence Federal Reserve monetary policy decisions. For instance, a rising unemployment rate might prompt the Federal Reserve to lower interest rates to stimulate economic growth, which could lead to higher bond prices and a weaker USD. Conversely, a strong NFP report may indicate a growing economy, but if inflation is also rising rapidly, the Fed might increase interest rates to cool down the economy. This could negatively impact the stock market. It's important to note, however, that NFP data is just one of many economic indicators. Inves