Lately, advisors and investors have viewed the monthly jobs reports from the U.S. Department of Labor with trepidation, fearful that weaker jobs data could indicate a risk of recession.
These fears played out earlier in September, with the market plunging as the report showed lower-than-expected job growth. While the hiring numbers may have disappointed some, the report still contained plenty of good indicators on the state of the economy.
Jack Janasiewicz, CFA, portfolio manager and lead portfolio strategist for Natixis Investment Managers Solutions, broke down the August jobs report in the latest episode of “The Tactical Take.” Addressing the lower hiring numbers, he noted that adding more jobs to the market is “very difficult” as the economy nears full employment.
“We’re getting close to this stasis level where you’ve got hiring slowing, but you’re also not seeing firings, which is our bigger takeaway here,” Janasiewicz added. “Because if things were deteriorating to a point where we would start to be worried, I think you’d start to see the firing side picking back up, and we’re not seeing that yet.”
Looking at the report’s details, Janasiewicz highlighted that employment for the 25-54-year-old age group is near an all-time high. Additionally, he noted that layoff and discharge rates remain low while corporate margins are increasing. With corporate profitability in a good position, layoffs should remain comparatively low for the time being.
Harness a Long-Term Growth Strategy
Keeping these strong fundamentals in mind, investors can capitalize on a deceptively fine labor market with a risk-adjusted large-cap strategy. One fund that could do the trick is the Natixis Loomis Sayles Focused Growth ETF (LSGR ).
A highly disciplined fund with a long-term growth strategy, LSGR cultivates a tight portfolio of companies with strong business models. The fund uses a multistep process to research potential portfolio additions, focusing on valuation, growth, and quality.
By focusing on cultivating a sustainable and competitive portfolio, LSGR can keep investors engaged in U.S. equities. This is paired with an active management team that can help position the fund to both weather and capitalize on potential volatility.
Right now, LSGR’s high-conviction strategy is rewarding investors with compelling long-term results. As of Sept. 13, 2024, the fund’s NAV has risen 32.61% over the last 12 months.
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