A Banner Jobs Report, But...

Plus: Will Bonds Shine This Month? You are receiving this limited-time email resource as a subscriber to Kiplinger's free e-newsletters. To unsubscribe at any time, simply click the link in the footer below. AUGUST 6, 2021 [View in browser]( HOW TO PROTECT AND GROW YOUR BUSINESS AND INVESTMENTS NOW The latest monthly jobs report shows the economy is humming. But can that continue as the Delta variant of the coronavirus spreads? The July employment report from the Department of Labor cited 943,000 net new jobs, which in normal times would be considered a blow-out month. Even after factoring in the rebound in the labor market from last year’s pandemic-induced slump, it still looks like a very good month. Separately, the unemployment rate dropped to 5.4% in July, from 5.9% the month before. Job gains were broadly distributed across industries, according to DOL. But the question remains: Will rising virus case counts and the return of mask mandates in some parts of the country slow hiring in coming months? The government’s employment surveys were conducted in the middle of July, when Delta case counts were just ramping up. If employers pull back on hiring because of public health concerns, that will likely show up in August’s jobs report, due out in early September. --------------------------------------------------------------- SPONSORED CONTENT FROM MONOGRAM ORTHOPEDICS [Invest in the Future of Orthopedic Medicine With Monogram Orthopedics]( Implant complications contribute to 10-15% of joint replacement failures annually but with innovative robotic and implant technologies, Monogram is at the forefront of improving this accuracy. Learn more & invest. [READ MORE]( --------------------------------------------------------------- Should bonds be on your radar this month? We often turn to independent financial advisor LPL Research for [seasonal equity trends]( but LPL Fixed Income Strategist Lawrence Gillum points out that while August might be tough on stocks, it’s a pretty decent month for you bond investors out there. “Some months appear more or less favorable for core fixed income, as measured by the Bloomberg Barclays Aggregate Bond index, with August generally being the best performing month,” Gillum says. “On average, the index was up 90 basis points (0.90%) in August, which was nearly 50 basis points higher than the average monthly return of 39 basis points over all months.” The reason might very well be the difficulty stocks have in August and September. Namely, historically changing risk sentiment starting in August could be what drives investors into core bonds because they represent safety compared with stocks, while also acting as a higher-yielding alternative to cash. “That the fixed income markets have performed best in August, when equity market volatility has tended to increase, is no coincidence,” Gillum says. Free download, [The Kiplinger Letter's Forecast](. No information required from you. SPONSORED CONTENT FROM NORTHERN TRUST [Navigating Possible Tax Policy Changes]( Prepare your portfolio and wealth plan for change with research-based insights on the likelihood of proposed tax policy changes and cutting-edge wealth planning strategies for managing complex wealth from The Northern Trust Institute. [READ MORE]( RELATED LINKS [11 Small-Cap Stocks the Analysts Love for the Rest of 2021]( [13 Reasons to Shop at Walmart (Even If You Hate Walmart)]( [When to Opt-Out of Monthly Child Tax Credit Payments]( [Will U.S. Olympic Athletes Get Hit with a Tax Bill if They Win in Tokyo?]( [Sign Up for Kiplinger's Free Tax Tips E-Newsletter for Money-Saving Tax Planning and Tax Filing Compliance]( [Kiplinger] [Facebook]( [Twitter]( [LinkedIn]( Send this to a friend. [Click here.]( All content ©2021 The Kiplinger Washington Editors 1100 13th Street, NW, Suite 1000 Washington, D.C. 20005 Thank you for subscribing to Kiplinger's A Step Ahead, a free resource to help readers navigate the economic recovery from COVID-19. If you ever wish to stop receiving this service, please [click here to unsubscribe](.